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 […]
Shekhar Aiyar is a deputy chief in the IMF's European Department. He has worked on a broad range of countries in Europe, Asia, and Africa. His research interests include international macroeconomics, bank regulation, economic growth, and the role of luck in international cricket. He holds a PhD from Brown University.