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Banca d’Italia: Banks doubled NPL operations

12 December, Il Sole 24 Ore

According to Banca d’Italia, NPL disposals registered a significant breakthrough in 2018. Thanks to the State guarantee on securitisations, banks had been able to dispose of NPLs for 67 billion euro. Meanwhile, the amount of new bad loans had drastically reduced to 19 billion in 2018, the lowest level since 2009.

Collection rates have generally improved, both for securitisations (from 26% to 30%) and NPLs sold through ordinary operations (from 44% to 46%). The average collection rate was 38% for secured loans and 22% for unsecured loans. The quota of transferred holdings reached 50% in 2018, while prices increased up to 23% of the gross book value (it was 17% in 2017).

For what concerns 2019, the stock of impaired loans has reduced by 21.4% p.a., also in this case, thanks to securitisations.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi