In-Depth Analysis - Non-performing Loans - New risks and policies? NPL resolution after COVID-19 - 12-03-2021

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12-03-2021 12:00 AM CET

This paper reviews the main differences between the prospects for NPL build-up and resolution between the current pandemic and the financial crisis of 2008-2009. To facilitate NPL reduction following the pandemic, the ECB should actively counter the revealed tendency of banks with low profitability to implement relatively low loan loss provisions.

Source : © European Union, 2021 - EP


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