Non-performing loans (npl) and distressed loans are a hot issue of the Italian banking system. The Governor of the Italian Central Bank recently showed optimism about the recovery rate of these loans, based on two recent empirical studies. In this paper, a rigorous measurement of recovery rate is discussed, highlighting some flaws of the cited studies. Therefore, assuming the large dispersion among Italian banks in terms of credit quality, profitability and npl incidence on tangible equity, a cluster analysis is conducted on a sample of 450 banks in 2015, identifying six different clusters, in a continuum from “peaches” to “lemons” à la Akerlof. The emerging map does not appear so reassuring.

Venanzi, D. (2017). Banche italiane: che sofferenze!. ECONOMIA E POLITICA, 9(14).

Banche italiane: che sofferenze!

VENANZI, Daniela
2017

Abstract

Non-performing loans (npl) and distressed loans are a hot issue of the Italian banking system. The Governor of the Italian Central Bank recently showed optimism about the recovery rate of these loans, based on two recent empirical studies. In this paper, a rigorous measurement of recovery rate is discussed, highlighting some flaws of the cited studies. Therefore, assuming the large dispersion among Italian banks in terms of credit quality, profitability and npl incidence on tangible equity, a cluster analysis is conducted on a sample of 450 banks in 2015, identifying six different clusters, in a continuum from “peaches” to “lemons” à la Akerlof. The emerging map does not appear so reassuring.
Venanzi, D. (2017). Banche italiane: che sofferenze!. ECONOMIA E POLITICA, 9(14).
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11590/323346
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