How to cleanse NPLs from EU banks’ balances?

In the aftermath of the financial crisis, banks have accumulated about a trillion euro of non-performing loans (NPLs) in their balance sheets. The high levels of NPLs in countries such as Italy, Greece and Portugal constrain their banks’ lending abilities, which causes delays in the countries’ economic recovery.

Various potential private and public solutions have been promoted to resolve the problems caused by NPLs, but they persist. Discussants at this Lunchtime Meeting will assess the need for further public intervention to resolve NPLs based on the main proposed solutions and best practises. Inter alia, these include initiatives that banks have taken themselves to address NPLs issues, the development of a market for NPLs as well as the creation of national or EU-wide asset management companies to carve out the NPLs.

12:30  Registration & sandwich lunch

13:15 Panel discussion

• Ramón Quintana Aguirre, Director General, European Central Bank
• Stefano Del Punta, Chief Financial Officer, Intesa Sanpaolo
• Massimo Massimilla, Chief Executive Officer, Algebris Italy
• Piers Haben, Director of Oversight, European Banking Authority

Moderator: Cinzia Alcidi, Senior Research Fellow and Head of Economic Policy Unit, CEPS

14:30  End of meeting