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Non-performing loan
A non-performing loan (NPL) is a bank loan that is subject to late repayment or is unlikely to be repaid by the borrower in full. Non-performing loans represent a major challenge for the banking sector, as they reduce profitability.[1] They are often claimed to prevent banks from lending more to businesses and consumers, which in turn slows economic growth, although this theory is disputed.[2][3]
In the European Union, the management of the NPLs resulting from the 2007–2008 financial crisis has become a politically sensitive topic, culminating in 2017 with the decision by the European Council[4] to task the European Commission to launch an action plan to tackle NPLs. The action plan supports the fostering of a secondary market for NPLs and the creation of Asset Management Companies (aka bad banks). In December 2020, this action plan was revised in the wake of the COVID-19 pandemic crisis.[5]
- ^ "Định nghĩa khoản vay không hiệu quả NPL". What is NPL?. 2023-06-28. Retrieved 2023-07-06.
- ^ Angelini, Paolo (2018-04-12). "Non-performing loans and the credit allocation mechanism". VoxEU.org. Retrieved 2021-02-14.
- ^ Schäfer, Larissa (2016). "Forgive but not forget: the behaviour of relationship banks when firms are in distress". www.ebrd.com. Retrieved 2021-02-14.
- ^ "Council conclusions on Action plan to tackle non-performing loans in Europe". www.consilium.europa.eu. Retrieved 2021-02-15.
- ^ "Action plan: Tackling non-performing loans (NPLs) in the aftermath of the COVID-19 pandemic". European Commission - European Commission. Retrieved 2021-02-15.
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