Expecting a resurgence of non-performing loans (NPLs), which will be much greater as the economic crisis resulting from the Covid-19 pandemic will be more acute, the European Commission does not rule out setting up a European network of national asset management companies (AMCs), or ‘bad banks’, to lighten bank balance sheets and encourage credit institutions to continue financing the economy.
“The European Commission stands ready to help Member States in setting up national AMCs”,...