Swiss Economicblogs.org
Our model suggests that the Italian government’s strategy for the bad debt problems of the country's banks only will only be credible if economic growth returns Changes in banks’ Non-Performing Loans (NPLs) depend crucially on economic performance, including GDP growth and employment. Put simply, the Italian government’s strategy, or hope, is that even a modest economic recovery leads to a sustained, albeit gradual decline in NPLs and that systemic bank bailouts can be avoided. Moreover,...
Read More »Scenarios for Italian banks’ bad loans
