Journal of
Italian
Banking
Association

year 100
 

Archive » January 2021 » The need for urgent action on the European Npl framework

The need for urgent action on the European Npl framework

Giovanni Sabatini
January 2021 - n. 1
Keywords: Crediti deteriorati, banche, vigilanza, Europa
Jel codes: G21, G28

Credit is playing a crucial role in the current crisis in ensuring the necessary liquidity for households and businesses, hit by massive shocks on both the demand and supply sides. In this context, the European and national institutions have put in place a series of measures to deal with the emergency. However, the imminent application of changes to the European Npl framework, such as the new definition of default and the Calendar Provisioning, risks severely limiting banks' support for the economy and compromising the financial situation of customers in difficult conditions, even if only temporarily. It is therefore necessary to immediately make some changes and adaptations, which will allow banks to offer maximum support to the real economy.

Interested in this paper?
Buy the issue