Persistently high non-performing exposures (NPLs) in several European countries pose significant challenges to financial stability and are likely weighing on credit growth and economic activity. This paper, which summarizes a detailed IMF analysis (IMF SDN/15/19), examines the structural obstacles that discourage European banks from addressing their problem loans. It argues that a comprehensive approach comprising […]
Kenneth Kang is an Assistant Director in the European Department of the International Monetary Fund, heading the Advanced Economies division. He has worked on a broad range of countries, most recently on Italy and Japan. He also served as the IMF’s Resident Representative in Korea during 2003-06. He has a PhD from Harvard University.