FRANKFURT, GERMANY—14 OCTOBER 2024

European DataWarehouse (EDW), in collaboration with Zenith Global S.p.A., has published a new report titled “European Non-Performing Loans: Evolution & Future Prospects.”

The report provides a detailed analysis of the non-performing loan (NPL) market in Europe, with a particular focus on Italy and Greece, highlighting key trends, regulatory developments, and future prospects.

This report explores the evolution of the NPL market, where regulatory measures such as GACS (Garanzia Cartolarizzazione Sofferenze) in Italy and HAPS (Hellenic Asset Protection Scheme) in Greece have been implemented to facilitate NPL securitisations.

With regard to Italy, significant efforts have been made to transfer NPLs from banks to private investors, thereby improving banks’ capital ratios, aided by government guarantees. However, over €300 billion in non-performing exposures (NPEs) remain, which could fuel a substantial secondary market in the future, especially following regulatory changes that improve the effectiveness of distressed debt purchases. Stage 2 loans on banks’ balance sheets amount to more than €200 billion, bringing the total value of loans under review to over €500 billion.

As the NPL market evolves, there is an increasing need to improve transparency and standardise data disclosure to stimulate market transactions. The report offers an in-depth analysis of the data collection templates prepared by the European Banking Authority (EBA) and their impact on the efficiency of NPL portfolio transactions.

Dr Christian Thun, CEO of European DataWarehouse, stated: “The report highlights the significant progress made in the European NPL market over the past decade. The introduction of the EBA templates for NPL transactions is a crucial step towards increasing transparency, but more collaboration is needed to unlock the full potential of the secondary market. By improving data quality and consistency, and promoting cooperation among market participants, we can help shape a more resilient European financial system.”

The report also explores the implementation of the European Commission’s 2017 Action Plan, which laid the foundation for the current regulatory framework, and analyses the Secondary Market Directive and national implementing laws, assessing how these measures will foster a more efficient market. A key issue is ensuring transparency by developing a central, consolidated solution for managing NPLs, combining data storage, creditor coordination, and transaction management to improve data quality and expand market participation.

Umberto Rasori, CEO of Zenith Global S.p.A., commented: “Zenith Global is the technical partner for this project, thanks to our extensive experience in the NPL market through the numerous securitisations we have carried out over more than 25 years. Greater transparency and compliance with European standards are key to making markets more resilient and facilitating transactions.”

For more information or to access a copy of the report, Click here. Interested parties must agree to the Conditions of Access and provide contact details to download the report.

 

About European DataWarehouse

Founded in 2012 as part of the European Central Bank’s (ECB) implementation of the Asset-Backed Securities (ABS) Loan-level initiative, EDW is the first centralised data repository in Europe for the collection, validation, and download of standardised loan-level data for public and private European securitisations.

EDW currently hosts loan-level data and related documentation for over 1,500 securitisations (both public and private, STS and non-STS, as well as those subject to national and European securitisation laws). Additionally, EDW pools of additional credit claims and other performing and non-performing private portfolios belonging to various financial institutions across Europe, including the UK. Originators, issuers, arrangers, and servicers upload exposure information and the corresponding documentation to EDW, while data users, including institutional investors, data providers, rating agencies, and public institutions, use EDW’s data for monitoring, comparison, and risk assessment purposes.

For more information about European DataWarehouse, visit: www.eurodw.eu / www.eurodw.co.uk

 

About Zenith Global S.p.A.

Zenith Global is a financial intermediary specialising in the management of structured finance operations. Founded in 2000, with a “Strong” rating from S&P Global Ratings, Zenith Global manages over 250 securitisation vehicles (SPVs) and over €48 billion in performing, UTP (unlikely to pay), NPL, and real estate assets in the role of Master Servicer under the Italian Securitisation Law (130/99).

For more information about Zenith Global, visit: www.zenithglobal.eu

 

Media Contact:

European DataWarehouse GmbH

Carla Scarsella
Marketing & Communications Manager
Tel. +49 (0) 69 50986 9320
Email: carla.scarsella@eurodw.eu

Media Contact:

Zenith Global S.p.A

Ernesto Bonetti – Jet’s PR
Tel. +39 (0) 327 7938342
Email: e.bonetti@jetsgroup.it