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European NPLs through the crisis: a policy review

Nadege Jassaud (Single Resolution Board, Brussels, Belgium)
Edouard Vidon (Banque de France, Paris, France)

Journal of Financial Regulation and Compliance

ISSN: 1358-1988

Article publication date: 13 November 2017

Abstract

Purpose

The unfolding of the financial crisis in parts of Europe has highlighted a number of challenges which can be analysed through the prism of NPLs. These included the discrepancies across supervisory regimes, the limitations of macro-prudential supervision and the diversity of NPL resolution approaches.

Design/methodology/approach

The authors review policy lessons from the crisis in dealing with the NPL problem.

Findings

The paper highlights some key recommendations – the need for intrusive supervision, strong macro-financial surveillance and NPL resolution approaches that provide the right incentives.

Originality/value

These recommendations can help inform the current debate regarding regulatory and structural initiatives to tackle NPLs.

Keywords

Acknowledgements

The views expressed in this paper are solely those of the authors and do not represent the policies or opinions, past or future, of the Banque de France, or of the SRB or any of its board members.

Citation

Jassaud, N. and Vidon, E. (2017), "European NPLs through the crisis: a policy review", Journal of Financial Regulation and Compliance, Vol. 25 No. 4, pp. 413-421. https://doi.org/10.1108/JFRC-02-2017-0029

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited