European DataWarehouse (EDW), in partnership with Zenith Global S.p.A., has published a comprehensive new report titled “European Non-Performing Loans: Evolution & Future Prospects.” The report offers a detailed analysis of the non-performing loan (NPL) market in Europe, with a particular emphasis on Italy and Greece, examining key trends, regulatory initiatives, and the market’s future trajectory.
The report explores the development of the NPL market in recent years, focusing on the implementation of regulatory measures such as Italy’s GACS (Garanzia Cartolarizzazione Sofferenze) and Greece’s HAPS (Hellenic Asset Protection Scheme), which have been crucial for facilitating NPL securitisations.
In Italy, significant progress has been made in transferring NPLs from banks to investors, improving banks’ capital ratios through government-backed guarantees. However, more than €300 billion in non-performing exposures (NPEs) remain, presenting a potential growth opportunity for the secondary market. Additionally, Stage 2 loans on bank balance sheets amount to over €200 billion, bringing the total value of loans under review to over €500 billion.
As the NPL market continues to mature, the need for enhanced transparency and standardized data disclosure becomes more pressing to drive market transactions. The report provides an in-depth analysis of the data collection templates developed by the European Banking Authority (EBA) and their influence on the efficiency of NPL portfolio transactions.
Dr. Christian Thun, CEO of European DataWarehouse, commented: “The report underscores the tremendous progress in the European NPL market over the past decade. The EBA templates for NPL transactions are a significant step toward greater transparency, but increased collaboration is essential to unlock the full potential of the secondary market. By improving data quality, consistency, and fostering cooperation among market participants, we can help build a more resilient European financial system.”
The report also evaluates the European Commission’s 2017 Action Plan, which laid the groundwork for the current regulatory environment. It assesses the Secondary Market Directive and its national implementations, discussing how these regulations can drive a more efficient market. Central to this is the need for transparency, achieved through a consolidated solution that integrates data storage, creditor coordination, and transaction management to improve data quality and broaden market participation.
Umberto Rasori, CEO of Zenith Global S.p.A., added: “Zenith Global is proud to be the technical partner for this project, leveraging over 25 years of experience in the NPL market and numerous securitisations. Greater transparency and adherence to European standards are vital to creating more resilient markets and facilitating seamless transactions.”
For more information or to download the full report, interested parties can click here, provided they agree to the Conditions of Access and submit their contact details.
About European DataWarehouse
Established in 2012 as part of the European Central Bank’s (ECB) Asset-Backed Securities (ABS) Loan-level initiative, EDW is Europe’s first centralized data repository for collecting, validating, and distributing standardized loan-level data for both public and private European securitisations.
Currently, EDW hosts data and related documentation for over 1,500 securitisations, covering both public and private portfolios, including STS (simple, transparent, and standardized) and non-STS securitisations. EDW also manages pools of credit claims and other performing and non-performing portfolios from financial institutions across Europe, including the UK. Institutional investors, data providers, rating agencies, and public institutions utilize EDW’s data for monitoring, comparison, and risk assessment.
For more information, visit: www.eurodw.eu.
