EU NPL problem needs solution once and for all

Author: | Published: 30 Oct 2017

Trying to get rid of non-performing loans (NPLs) in Europe is akin to digging a hole with a spoon – an already painstakingly drawn out process that's made even longer by the lack of adequate tools to deal with the problem.

The European Central Bank (ECB) announced earlier this month it was consulting on a number of new rules which aim to get rid of bad debt in the region by mandating banks to set aside enough collateral to cover the value of the NPLs.

The proposed new rules – which, make no mistake, the ECB will expect banks to...