Taking advantage of the current favourable economic conditions to start reducing non-performing loans (NPL) more aggressively: this is the recommendation made by the chair of the Single Supervisory Board of the European Central Bank (ECB), Danièle Nouy, to the members of the European Banking Federation, in Frankfurt on Wednesday 24 January.
Although everybody agrees on the need to reduce NPL rates to lower levels, she observes a degree of “resistance” to reducing them too quickly. The...