Visco, vulnerable banks of non-performing loans, but close to a turning point. The bail-in should be reviewed – Il Sole 24 Ore

History of the article

Close

This article was published April 19, 2016 at 16:06.
the last change is the April 19, 2016 at 17:45 hours.

“the high level of non-performing loans continues to be the main factor of vulnerability of Italian banks but the multiple measures to address them are starting to bear fruit, we could be at a turning point. ” This was stated by the Governor of the Bank of Italy Ignazio Visco hearing in the Senate in the investigation on cognitive conditions of the banking system, recalling the government’s initiatives, Parliament, the authorities and the banks themselves.

the supervision has prevented the general crisis of the system
the action of supervision in the years of recession ‘has prevented the onset of a deep and widespread crisis in the banking system, “said Visco stressed that” banks strongly oriented traditional intermediation retail are affected more than others of deep and prolonged recession “and that institutions have accumulated” a high amount of non-performing loans, reflecting widespread bankruptcies of companies. ”

The governor, however, that to be successful, the fund Atlas are to complement “other complementary interventions.” Visco hearing in the Senate cited the improvement of internal procedures for managing non-performing loans and “more rapid and effective out of court procedures.” “Last August, the government approved a package of reforms that are giving an important boost to the efficiency of debt recovery mechanism. However, you can do more, “said the governor.

A day further recovery measures loans
The government is preparing to launch, “I imagine in a few days, further measures aimed at making the recovery process faster and more effective than impaired loans, “he said Visco noting that” the supervisor encourages banks to reduce non-performing loans by all means, including the supply on the market. ” According to the governor, however, “this objective should be achieved gradually as has been repeatedly stated by the ECB president and the president of the supervisory board.”

Npl developed breakthrough, thanks to economic recovery
“In terms of non-performing loans could be at a turning point,” said the governor stressing that “the economic recovery is gradually loosening the pressure on bank balance sheets.” Visco for “the consolidation of the economic recovery is indispensable condition because the reduction in the stock of impaired loans continue.” Disposal “must be managed without undermining the results achieved in terms of capitalization.”

On the economic scenario Visco noted that “Europe is now slowly emerging from the crisis.” In Italy he added, “the legacy of the recession is heavy: the loss of GDP in real terms compared to the pre-crisis peak of about 9 percentage points and the fall in industrial production by about a quarter.” The Governor noted that “in the euro area average GDP has largely held, and industrial production fell by ten percent, far less than in Italy.”

© ALL rIGHTS RESERVED

Permalink