the Eurogroup has agreed to proceed with the reform of the European Stability Mechanism (ESM), to sign the revised Treaty in January 2021 and launch the ratification process. Given the progress made in risk reduction and the further measures outlined below, we have also agreed to advance the entry into force of the common backstop to the Single Resolution Fund by the beginning of 2022. These decisions mark another important step towards completing the Banking Union. Read the article.
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Andrea Enria, president of the European Central Bank’s supervisory board, said the shortfalls in banks’ preparations for a likely rise in bad loans was one factor to be considered in its decision on whether to allow them to resume dividend payments and share buybacks. Speaking at the Financial Times Global Banking Summit, Mr Enria said some of the 117 banks it oversees were “all over the place” on provisioning for the likely rise in non-performing loans. This was “a concern” for supervisors, he warned. Read the Article.
A European Commission paper due to be published in December will discuss ideas including boosting secondary markets for buying and selling non-performing loans (NPLs) and creating a network of national bad banks across the EU. It will also seek to tackle anomalies in the bank capital regime for distressed assets. Read the Article.
Cerved Credit Management has launched a new platform for buying and selling credits both within portfolios and as single names. The marketpalace is already active within Markagain the virtual showcase that the special servicer makes available to selected and accredited investors. Article in Italian.
Credito Fondiario, has announced the acquisition of a 1.67 billion euro mandate to oversee the role of Master Servicer and Special Servicer in the management of a portfolio of non performing loans. As a result of this operation, and the others concluded in the current quarter, the total receivables managed by Credito Fondiario as Special Servicer at the end of the year will amount to approximately Euro 19 billion. Article in Italian.
Fintech & Insurtech: the COVID push towards a new ecosystem is the title of a digital event held on decembre 2nd presenting the results of a research project by Politecnico di Milano. As in previous years’ editions, unique analyses and data on the status and trends of digital innovation in the financial and insurance world, at Italian and international level, were presented. Article In Italian.
According to some rumors reported by the newspaper Il Messaggero, a reorganization of the partnership between Intesa Sanpaolo and Intrum Italy for the management of impaired loans is under discussion. According to the terms of the agreement, the servicing contract would have a ten-year duration, however, the bank has reserved the possibility to repurchase from Intrum 51% of the recovery platform that is currently held by the Scandinavian investor Article in Italian.
In response to a question by the former President of the European Parliament, Antonio Tajani (Ppe), the European Commissioner for NPLs Mairead McGuinness announced that the new regulations on the management of NPLs should be postponed by at least six months offering some relief to credit institutions. Article in Italian.
Credit Village’s Monitoring center on NPE Market released an update on transactions in the first nine months of the year, recording a decrease of just over 11% in the number of transactions and 15.8% in value. By the end of the year, considering the pipeline transactions and the positive closing of the MPS-Amco Jumbo deal, total volumes are estimated at around €27-28 billion. Article in Italian.
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GLG – Gerson Lehrman Group – Council Member