What a Drag: The Burden of Nonperforming Loans on Credit in the Euro Area

From iMFdirect - The IMF Blog Mon Jun 23 2014, 15:19:44

By Will Kerry, Jean Portier, Luigi Ruggerone and Constant Verkoren  High and rising levels of nonperforming loans in the euro area have burdened bank balance sheets and acted as a drag on bank profits. Banks, striving to maintain provisions to cover bad loans, have had fewer earnings to build-up their capital buffers. This combination of [...]

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