Non-performing loans (NPLs)
Central Bank of Myanmar retreats from stricter loan rules for banks
CBM loosens regulations on overdraft facilities in response to market concern
RBI’s Acharya: ‘fundamental reform’ to fix transmission
Despite several earlier attempts at reform, the central bank is still struggling to pass on its policy actions to the economy
BIS paper studies how weak banks beget zombie firms
Weak banks have a tendency to misallocate capital, authors find, though the effect is only important in the long run, in contrast to earlier studies
Visco cautions ECB against forced sales of NPLs
Move to set minimum sell-offs could hamper banks’ recovery, Bank of Italy governor says
RBI welcomes $32 billion public bank recapitalisation
Government unveils funding package designed to free India’s large public banks from a heavy burden of non-performing loans
Florens Luoga named new Bank of Tanzania governor
Tax lawyer and academic picked to head the central bank as Benno Ndulu completes second term
European financial system is bigger and more concentrated, ECB says
NPLs have declined, but remain high in Cyprus, Greece, Italy and Portugal
Banking industry has ‘consistently failed customers’ – Ireland’s Sibley
Banks should focus on whether outcomes are desirable, not just whether they are legal, says deputy governor
Kazakh central bank injects $1.2 billion into four banks
Institutions submitted plans to increase capital and reduce NPLs, says governor
IMF recommends Spain take a tougher approach on NPLs
Fund advises central bank to set up a group to oversee public asset management company Sareb
ECB targets NPLs with tougher prudential rules
The proposed regulation will only apply to new distressed assets from January 1, 2018
Poor monitoring led to rise in NPLs, says Rwanda’s central bank
NPLs rose to 8.2% in June, according to central bank stats; banks urged to strengthen monitoring and credit underwriting processes
Bad assets ‘keep me awake at nights’ – RBI deputy governor
Reform proceeding at a “glacial pace”, says Viral Acharya
Ghanaian central bank closes two commercial banks
IMF staff called for action in February over problems at some commercial banks
Serbia’s Tabaković deems NPL action plan a success
Proportion of NPLs has fallen by 6% since 2015, says governor
IMF explores ways to increase profitability of Italy’s banking sector
Italian banks have operated in a low-growth environment since early 1990s; eurozone interest rates at record lows since global financial crisis
Piecing together a financial theory of stagnation
Ideas presented at recent BIS annual meetings reveal an emerging framework that explains how the financial system may be dragging down the real economy; Hélène Rey was the latest to contribute
Addressing the eurozone’s ‘lemons’ problem for NPLs
State-supported securitisation of the riskiest tranches of eurozone bank NPLs could tackle information asymmetries between buyers and sellers, and restore market function
Guinea Bissau still struggling with NPLs, says latest IMF assessment
Country still reeling from failed bailout that saw two banks default; fund stresses the need for prudential regulatory compliance and praises three-pronged approach
Vietnamese central bank cuts rates, despite IMF credit warning
Decision contradicts IMF advice to keep monetary policy on hold to contain rapid credit growth, but growth and inflation have disappointed
Too early to tell if eurozone NPL reforms are sufficient – ECB
Changes to legal systems are “not keeping pace” with new laws
Thai central bank warns on deteriorating debt serviceability
Bank of Thailand flags financial stability risks as weakening macroeconomic outlook impacts debts among SMEs and households
NPLs ‘must’ rise during downturns – MAS’s Menon
If NPLs failed to rise during “difficult times”, that would be a sign banks are not doing their job right, MAS chief says
RBI begins to wield new banking clean-up powers
Central bank puts pressure on banking sector to carry through plans to address non-performing assets; floats idea of supplying its own credit ratings to prevent “rating shopping”