Non-Performing Loans

What? The NPL Advisory Panel, a consultative entity set up by the Commission Services (DG FISMA) to provide advice and expertise in the area of non-performing loans (NPLs), published a paper exploring the role of securitisation to further develop secondary markets for NPLs.

When? 14 December 2023

Why? Non-performing loans are bank loans that are subject to late repayment or are unlikely to be repaid by the borrower. Handling NPLs is resource-intensive, and when faced with high level of NPLs in their portfolios, banks might instead decide to dispose of NPLs on secondary markets to free up resources for their performing business. The aim of this paper is therefore to examine how securitisation contributes to the development of a mature EU secondary market for NPLs and of a sound NPL ecosystem. 

Want to know more? Further developing secondary markets for non-performing loans: the role of securitisation (europa.eu); Non Performing Loans (NPL) Advisory Panel - European Commission (europa.eu)