How to manage the NPLs? Focus on the Italian situation
Is a stable financial system better than a profitable one?
The principal activity of a bank is to grant loans to people, in order to buy a car or a house, or to companies, to allow them to invest, create profits and more jobs. Banks loans usually turn out to be either in bonis loans or bad loans, that is when it is difficult for […]
Italian Banks face a new perspective: the Bad Bank model
Since the 2008 financial crisis, governments and authorities have been issuing a number of regulations in order to prevent the systemic risk from generating negative consequences on the financial system once again. The 2007 events related to the US housing market and its consequences on the global financial markets were caused by different factors, such […]
In late January, after an intense phase of negotiations with the European Commission, Italy reached an agreement in order to create the Bad Bank. In compliance with the EU regulation against state aids, the Bad Bank scheme will not be a bailout. Technically, it will consist in offloading the Italian banks’ NPL portfolios by […]