MILAN, Nov 14 (Reuters) - The Bank of Italy published a paper on Tuesday with updated figures on Italian bad bank loans, which account for one quarter of Europe’s total.
The paper is available at the following link: here
Following are its main findings:
* In 2016 Italian banks recovered on average 34 percent of the bad loans’ nominal value, compared with 35 percent in 2015 and 34 percent in 2014
* The dip in the average recovery rate was driven by a higher proportion of bad debts being sold, rather then recovered internally by lenders
* The average recovery rate on loans sold on the market stood at 23 percent, up from 20 percent in 2015
* The speed of disposal increased and 38 percent of loans that became non-performing in 2015 were shifted off the balance sheet within a year, up from a low of 20 percent in 2012
* The ratio between the amount of bad loans dealt with during the year and the stock outstanding at the beginning of the period rose to 9 percent in 2016, up from a low of 6 percent in 2013 (Reporting by Valentina Za, editing by David Evans)