|Author (Person)||de Haan, Jakob|
|Author (Corporate)||European Parliament: DG Internal Policies|
|Publisher||European Parliament: European Parliamentary Research Service (EPRS), European Union|
|Series Title||EPRS In-Depth Analysis|
|Series Details||PE 659.645|
|Publication Date||March 2021|
|Content Type||Research Paper|
Model estimates of NPLs of a large sample of banks in the euro area suggest that macro-economic factors drive NPLs. This implies that the NPL-ratio may not increase in a similar fashion as after the global financial crisis. However, the low fit of the model shows that idiosyncratic factors play a major role in explaining NPLs. This is illustrated in a case study for the Netherlands which suggests that deferred tax payments may lead to increasing NPLs.
This document was provided/prepared by Economic Governance Support Unit at the request of the ECON Committee).
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||Financial Services|
|Keywords||Banks | Banking, Non Performing Loan [NPL]
|International Organisations||European Union [EU]|