Npls management and Ecb Guidance to banks: from servicing agreements to sale strategies

Non-performing loans management will necessarily take time. Banks have to invest in their internal structures in order to make them more functional to the size and importance of the phenomenon, also considering the opportunity to make partnerships with specialized servicers. Ecb Guidance recently published outlines measures, processes and best practices for banks when tackling Npls. The best practices in the industry highlight the factors to be considered, including, in particular, the development of appropriate It systems, specialized, motivated and adequately trained personnel, the availability of measurement models.