Is NPL securitisation banks' unlikely saviour?

摘要

As current fiscal stimulus measures are lifted and the true economic impact of the pandemic begins to bite, the road ahead looks rocky for the banking sector - and for many reasons that are similar to what challenged banking in the aftermath of the global financial crisis. One of the major thorns in banks' sides from the previous crisis was the presence of significant volumes of non-performing loans (NPLs), which now look set to multiply in the wake of the pandemic. NPLs have caused a real drag on profitability and the absorption of valuable internal resources in managing problematic positions. The last thing the sector needs is for this to increase in coming years. Concerns surrounding NPLs are not just confined to the banking sector. Governments and legislative bodies worry about them too, as they are too well aware of the stifling impact that NPLs have on lending and, therefore, the wider economy.