The EU Parliament Think Tank published the study “Non-performing loans – new risks and policies? What factors drive the performance of national asset management companies?” which was prepared by the Economic Governance Support Unit (EGOV) at the request of the Committee on Economic and Monetary Affairs (ECON).
In the past decade, asset management companies (AMCs) have been an effective tool for relieving banks of large portfolios of non-performing loans (NPLs). Managed over time, AMCs can reduce the financial burden on the overall system. The study is based on the existing literature and EU experiences of national AMCs created in the aftermath of the global financial crisis. It discusses the advantages and disadvantages of using AMCs, and considers the key elements in their design.
The study has been co-authored by Prof. Rym Ayadi, Professor at The Business School (formerly Cass), President of EMEA, Prof. Emilios Avgouleas, Chair International Banking Law and Finance, University of Edinburgh, member of EMEA Advisory Board, Prof. Giovanni Ferri, Professor of Economics at the Department of Law, Economics, Politics & Modern Languages at LUMSA University, member of EMEA Advisory Board, Prof. Barbara Casu Lukac Director of the Centre for Banking Research and Professor of Banking and Finance at The Business School (formerly Cass), EMEA Expert, Dr. Willem Pieter de Groen, Senior Research Fellow and Head of the Financial Markets and Institutions Unit at CEPS, EMEA Expert, and Dr Marco Bodellini, Associate Lecturer in Banking and Financial Law at Queen Mary University of London.