Non-performing loans of roughly €17 billion were removed from the balance sheets in 2021. All cash and "off-balance-sheet" credit exposures to a bankrupt borrower constitute non-performing loans. Bankitalia underlined this in its financial stability and supervision bulletin yesterday. The amount, although lower than in 2020 (25 billion), is more than twice the number of new non-performing loans (7 billion) and higher than 2020 (42% vs. 38%) as a proportion of non-performing loans outstanding at the end of the preceding year. The decline compared to 2020 is mainly due to fewer market disposals (from €20 billion to €14 billion) and the reduction in these loans on banks' balance sheets.
|