The Limited Times

Now you can see non-English news...

Banca Ifis, 385 billion bad loans in Italy in 2021

2020-10-01T09:12:32.173Z


 A new wave of non-performing loans is coming in 2021 due to Covid, but it will not be a storm like in the subprime mortgage crisis of 2011. From the 338 billion expected for the current year it will rise by 5% to 385 billion according to the CEO of Banca Ifis Luciano Colombini, who took stock of the traditional autumn conference on the sector, which was held this year in the enchanting setting of


 A new wave of non-performing loans is coming in 2021 due to Covid, but it will not be a storm like in the subprime mortgage crisis of 2011. From the 338 billion expected for the current year it will rise by 5% to 385 billion according to the CEO of Banca Ifis Luciano Colombini, who took stock of the traditional autumn conference on the sector, which was held this year in the enchanting setting of Villa Erba in Cernobbio (Como).


According to estimates by the Banca Ifis NPL Observatory, the loan impairment rate will rise from 1.3% in 2020 to 2.8% in 2021, while the ratio between NPE (the set of impaired loans, which includes non-performing, substandard and overdue loans) and total loans disbursed will rise from the current 6.2% to 7.3% in 2021.


For Colombini "the wave is swelling, but Venice is not flooded yet".

"The high water - said the banker - will arrive next year, when the default rate will be doubled".

However, a better situation than the 2011 crisis. According to the CEO of Banca Ifis "the negative results of this crisis are lower than the previous crisis, when the default rate was 4.5%".

"In this crisis - he underlined - there have been important interventions by governments and central banks".

Not everything works as it should though.

The watchlist in this case is called Amco, the public manager of non-performing loans.

"We see it well - Colombini pointed out - but with an unavoidable condition, that it is a market operator and from the first signs we have it would not seem that this is the case".


"The Npl servicer industry, which has exceeded 8 thousand employees with operations carried out for several billion euros, must be protected", he specified, underlining that Amco should intervene in the bailouts, while, if it operates on the market "the billions of public intervention would have a distorting effect and would weigh on the taxpayer's shoulders ".

In collaboration with:


BANCA IFIS

Source: ansa

All life articles on 2020-10-01

You may like

Trends 24h

Life/Entertain 2024-03-28T17:17:20.523Z

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.