NPLs to blame for lending drag, say regulators
Banks that have already increased capital are lending most, says EBA's Enria
Non-performing loans (NPLs) on European banks' balance sheets, not new capital requirements, are to blame for low profitability and a reluctance to lend, according to four major financial regulators.
The heads of the European Banking Authority (EBA), Basel Committee on Banking Supervision, Europe's Single Resolution Board (SRB) and Banco de Portugal said banks should be pushed to reduce legacy portfolios of NPLs, and must be supported by improvements in bankruptcy procedures, as well as legal
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