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Archive » December 2020 » The case for a European network of national Amcs

The case for a European network of national Amcs

Rainer Masera
December 2020 - n. 12
Keywords: Bad bank, Non Performing Loans, Unione Bancaria
Jel codes: G21, G28

The exceptional nature of the depression triggered by the pandemic is at the root of the need to create an Asset Management Company at European level. In line with Andrea Enria's proposals, it is appropriate to create an integrated network of national Amcs of the euro area, with the direct involvement and majority role of the Ecb, the European institutions and national governments. The Amcea should focus on the €900 billion Npls that will be created by the pandemic, issuing bonds that would be acquired by banks in return for the bad loans sold; the bonds, securitised and divided into tranches, will bear the guarantee of individual States on the senior tranche. With significant benefits for banks and the European economy: more time, more credit, less losses, and a mitigation of liquidity, funding and systemic risks.

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