The Congress, which represent an opportunity of primary importance for networking, the exchange of ideas and opinions between operators and financial institutions, particular emphasis is devoted to the Assiom forex congresso of the Italian Central Bank Governor, Mr. Ignazio Visco, which is scheduled on Saturday, February 10th.
The event will take place at Cattolica Center and has been made possible thanks to the collaboration and support of BANCO BPM. It is possible to sign up online and get all the information about the Congress through our institutional website www. Hoping to meet you in Verona, Best regards. Audio New devices ensuring excellent performances in any situation. Video Projectors with high resolution, full HD emission directions for special effects.
Light Scenic and architectural lighting: the many facets of lighting design. Innovation Always a step forward, in research as well as in development and investment. System Integrator Supply and installation of plants and equipment with advantage of rent integration. European banks have not recovered from the Global Crisis, in part due to heavy provisions for non-performing loans. This column argues that a comprehensive approach to the issue in Europe could address market inefficiencies and reduce bad loans to bearable levels. The establishment of a European scheme to securitise non-performing loans should form one of the next steps towards recovery. After ten years of crisis, European banks are far from seeing the end of the tunnel.
While US banks have recovered fairly quickly and have reached in 2012-15 a return on equity of 9. European banks are still stuck at a meagre 3. A necessary condition is to remove NPLs from banks’ balance sheets. However, the market for bad loans is affected by information asymmetries that create a wedge between the price at which banks are willing to sell and the price offered by specialised investors. The problem has implications at the European level.
First of all, NPLs are one of the major causes of the financial fragmentation that hampers one of the most important benefits of the financial and monetary union, namely, the sharing of economic risks across borders. Meanwhile, regulators have forced a significant recapitalisation. There are at least two factors that make it so difficult to remove bad loans from banks’ balance sheets. NPLs that discourage banks to sell.
Of course, the sale must entail a loss, which would probably require a recapitalisation to restore prudential requirements. This market failure can be solved by a public initiative that creates a vehicle that could operate on a time horizon long enough to avoid fire sales, financed with tranches of securities bearing different levels of risk. The result brings the sale price closer to the real economic value estimated by the banks, creating a powerful incentive to sell. A securitisation scheme for the Italian banking system In Bruno et al. The exercise estimates the par-yield returns for each tranche via Monte Carlo simulations, using a risk-adjusted probability loss distribution of the loan portfolios. Risk premiums are adjusted to account for the volatility of recoveries risk and liquidity risk.
2 billion, amortising coupon bond, eight years, average maturity 4. 3 billion, bullet zero coupon note, maturity eight years, target return 15. The average cost of capital of the SPV is 7. Any losses deriving from the recovery process will reach the junior tranche only if the recovery rate of securitised portfolio goes below 28. NPEs market for the mezzanine or even the junior tranche. Some form of public support may be necessary, as recently suggested by European regulators.