2021-01-28 Italian Banks and NPL Market – English Update

On January 29th at 11:00 am Credit Village will present the first CVSTREAMDAY a free TV and Digital conference accessible at this link. Undated data on Italian Market NPE transactions will be discussed live. Read the article in italian.

Nine eurozone banks took advantage of the European Central Bank’s relaxed rules to fall below its minimum capital requirements last year as part of supervisory efforts to keep credit flowing during the coronavirus crisis. The number of banks falling below the ECB’s overall capital requirements and guidance increased from six the previous year, the central bank said on Thursday. While the ECB did not name the banks, it warned that the pandemic was still likely to create more problems for lenders. Read the Article.

Scope Ratings reported that Italian NPL collections have been volatile in recent months. They increased 16% in November 2020 compared to October, but performance remains subdued relative to pre-Covid levels. Collections picked up in June and July 2020 as the courts reopened, suffered a seasonal effect and fell back in August, but have plateaued 10%-15% below pre-Covid levels since September. We expect performance will continue to be impacted in the short term because of the slowdown in economic activity during the November lockdown. Read the Report.

Andrea Enria, chairman of ECB supervisory board, during the press conference to present the results of the SREP for 2021, highlighted the prospect of an increase in NPLs for which banks’ balance sheet have not yet been update. He explained that ECB comprehensive assessment exercise has “focused on the adequate classification and measurement of risks in the bank balance sheets and the degree of preparedness to promptly manage debtors in difficulty.” Read the article in Italian.

WizKey, a fintech that offers innovative solutions for the credit market, has signed an agreement with SIA, a leading European hi-tech company in payment services and infrastructures controlled by CDP Equity, to launch an innovative platform available to banks, funds and financial operators to negotiate credits on blockchain and encourage greater liquidity for the benefit of SMEs. Read the article in Italian.

The European Consumer Organization (BEUC, Bureau Européen des Unions de Consommateurs) expressed concern regarding the European Commission Action plan: “Tackling non-performing loans (NPLs) in the aftermath of the COVID-19 pandemic” released in December. I wrote a short post to explain why these concerns are logically flawed Read the article

Officine CST closed 2020 with growing Asset Under Management despite the pandemic and purchasing over 160 million of NPLs. This Italian Credit Management company is fully owned by the Cerberus fund and is specialized in the management of performing and non-performing loans to the public administration and the retail and corporate markets. Read the article in Italian.

Virtual B and Fintech District presente a new consulting service named “Advance”. It is for companies to create and manage “tailor-made” projects delivered in a “Data Science as a Service” mode. Read the article in Italian.

Dbrs Morningstar has published an update on Italian banks stating that while they retain adequate capital, they remain vulnerable to asset quality deterioration in the future given the prolonged crisis caused by the pandemic. Read the article in Italian.

Check previous Eglish Updates

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Are you interested in Italian banks and NPL/UTP market? Ask for a briefing  (in person or via conference call) by sending me a private message. I am also available for consulting projects on Distressed Assets pricing and Portfolio Management.

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GLG – Gerson Lehrman Group – Council Member

Pubblicato da Massimo Famularo

Investment Manager and Blogger Focus on Distressed Assets and Non Performing Loans Interested in Politics, Economics,

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