Deloitte Vienna 30 May 2017
Deloitte had the great pleasure to welcome key players in the non-performing loan (“NPL”) market from banks, investors and law firms at this year’s NPL event on 30 May 2017.
NPLs in Europe – more deals, different markets
In the aftermath of the financial crisis, the volume of non-performing loans (NPLs) increased significantly and currently stands at € 1.06tn – or 5.4 per cent of the sector’s total gross loans - in the European banking system, according to the European Banking Authority. The issue is now on top of the list for EU policymakers given the detrimental macroeconomic impact high volumes of NPLs within banks are considered to create. The view of regulators in Austria and across Europe is that banks with high NPL ratios are unable to free up enough capital to lend to performing businesses, slowing economic growth. The increased focus on NPLs has led to banks disposing of record levels of NPLs in 2015 and again in 2016, with just over €103bn of completed deals and even more to come in 2017. Core markets in 2017 are expected to be Italy, Spain and Portugal, while Ireland and UK are nearing the end of their deleveraging journey.
NPL Event – latest insights from a financial and legal perspective
The expert team from Deloitte covered latest developments in restructuring, recent updates in ECB regulations, trends in the European NPL market and the legal aspects in distressed debt acquisitions in their speeches. These were followed by vivid discussions between sellers and buyers of NPL portfolios.