In recent years, Italian banks have strongly reduced non-performing loans, bringing the net Npl ratio to 3.9% at the end of 2019. However, as the Bank of Italy also acknowledges, there is a speed limit with which to manage the divestment; a new credit policy and a return to internal management are needed, together with credit sales to specialized funds in which the banks are co-interested. Even the legislators can encourage the recovery of loans,avoiding the risk that, by facilitating massive and accelerated disposals to non-bank operators, credit will be reduced to companies with the possibility of survival.
