Sad bank … Mad bank

bad-bankIf you have left something behind or are not interested in business magazines, just think that the bad bank (which holds non-performing loans) is regarded as a panacea by some industry experts, and as a useless or untimely solution by others. In any case, taking a stand on this topic has become almost mandatory, to the extent that the choice may determine the fate of the non-performing loan market.

However, it is restrictive to consider only the “accounting” aspect and overlook the true difficulty of this market, i.e. the enhancement of the guarantee loans and assets.

In other words: after the bad bank, the loans must be recovered and enhanced. It is useless to deny their existence.

Second, there is no actual correlation between the non-performing loans held by the banks and the ability of the latter to supply loans: it is useless to lend more money to people and companies, if they cannot receive and sustain them.

However, regardless of the bad bank, any initiative aimed at freeing up the loans from the banks and adjusting their pricing is crucial. It is equally important to entrust these loans to qualified and specialising players, able to fill the gap between the free market and the “judicial” price.

GMA focuses on constantly improving the NPL management process, making it increasingly flexible as a function of every situation and oriented towards the active administration of the simple and complex collaterals.

Emanuele Grassi