G2TT
来源类型Policy Contribution
规范类型简报
Risk reduction through Europe’s distressed debt market
Alexander Lehmann
发表日期2018-01-18
出版年2018
语种英语
概述The resolution of non-performing loans (NPLs), a stock of roughly €870 billion in the EU banking industry, is central to the recovery of Europe’s banking sector and the restructuring of the excess debt owed by private sector borrowers. Could the development of distressed debt markets be a new element of capital market deepening in Europe?
摘要

A version of this Policy Contribution was originally prepared as the in-depth section of Analysis of developments in EU capital flows in the global context, a report by Bruegel for the European Commission. The study is also available on the European Commission’s webpage.

The market for distressed debt will need to play a more prominent role in Europe’s emerging strategy to tackle the legacy of non-performing loans (NPLs). This market could speed up NPL resolution and allow greater flexibility in bank balance sheet management. Investors could contribute crucial skills and possibly capital to the process of workout and restructuring.

The loan sale process potentially suffers from a number of market imperfections which manifest themselves in high valuation gaps, and in the market failing to cover certain asset types.
In Europe, turnover from distressed debt sales remains limited relative to the total stock of €870 billion in non-performing loans, and the additional stock of €1.1 trillion of so-called non-core banking assets, which banks also seek to divest in this market.

There has so far been little market demand for the bulk of unsecured assets among small and medium-sized companies and other corporate borrowers, loans held by smaller banks with their higher NPL ratios, or exposures to larger enterprises that could benefit from comprehensive debt restructuring and additional finance.

Significant further supply might now come into the market as stricter supervisory guidelines are implemented, and as new accounting guidelines force higher provisioning levels. Improved national restructuring and insolvency regimes are beginning to attract a wider range of investors.

An initiative by EU finance ministers to improve transparency around loan quality and foster greater liquidity through transaction platforms might lower transaction-specific fixed costs somewhat. More decisive public support, for instance through asset management companies or in securitisation structures, might be needed.

As a significant share of Europe’s banking assets might move into the hands of little-known investors, some of the benefits of relationship banking could be lost, and the conduct of the loan servicers will come into the focus of regulators.

主题Finance & Financial Regulation
关键词bank regulation banking union Banks capital markets Capital markets union Non-performing loans (NPLs) Sovereign debt
URLhttps://bruegel.org/2018/01/risk-reduction-through-europes-distressed-debt-market/
来源智库Bruegel (Belgium)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/429683
推荐引用方式
GB/T 7714
Alexander Lehmann. Risk reduction through Europe’s distressed debt market. 2018.
条目包含的文件
文件名称/大小 资源类型 版本类型 开放类型 使用许可
PC-02_2018_COVER.jpg(170KB)智库出版物 限制开放CC BY-NC-SA缩略图
浏览
个性服务
推荐该条目
保存到收藏夹
导出为Endnote文件
谷歌学术
谷歌学术中相似的文章
[Alexander Lehmann]的文章
百度学术
百度学术中相似的文章
[Alexander Lehmann]的文章
必应学术
必应学术中相似的文章
[Alexander Lehmann]的文章
相关权益政策
暂无数据
收藏/分享
文件名: PC-02_2018_COVER.jpg
格式: JPEG

除非特别说明,本系统中所有内容都受版权保护,并保留所有权利。