CEU Electronic Theses and Dissertations, 2022
| Author | Benoit, Kornel |
|---|---|
| Title | Asset Quality Review of the EU and its Riskiest Banking Sectors: Greece, Portugal, and Italy |
| Summary | The asset quality of the EU has been a major focus-point for banks and regulators throughout the last decade. This paper seeks to analyse the past, present and future of asset quality across the EU. Following troubled and uneven recovery in the EU banking system after the 2008 crisis and subsequent sovereign crises since, the findings indicate that the zone has significantly strengthened its asset quality, with its NPL ratio reaching 2.1% at end-2021 (8% in 2014). Previously high-risk systems, i.e., Greece, Portugal, and Italy, have made tremendous progress in off-loading distressed loans from their balance sheets, and their risk-profiles are gradually consolidating closer to EU averages. In these countries, government-backed securitisation schemes through state management have been very successful programs to dispose NPLs, whilst heightened private equity interest has also led to strong demand in the secondary loan market for multi- billion-euro NPL portfolio sales. The EU continues to effectively shape policy to help the transparency and openness of secondary NPL markets to encourage large deal flows. |
| Supervisor | Schindele, Ibolya |
| Department | Economics MSc |
| Full text | https://www.etd.ceu.edu/2022/benoit_kornel.pdf |
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