Banks, Bank of Italy: in 2023 closed non-performing positions for around 9 billion

Bank of Italy economic prospects for Italy 2024 2027

(Finance) – In 2023 they were closed (eliminated from the balance sheets) bad positions for approx 9 billion. This is what emerges from Note on financial stability and supervision published by Bank of Italy which updates the estimates on the recovery rates of bad debts to 2023, already published since 2017 and illustrates the results of the annual survey on the transfers of loans classified as bad debts conducted since 2016 by the institution in via Nazionale. The data on bad loans, equal to approximately 1.6 times the value of new entries, is lower than 2022 in both absolute terms (22 billion), both of percentage incidence on bad debts outstanding at the end of the previous year (44% versus 64%).

The Bank of Italy explained that the reduction compared to 2022 was mainly determined by sales (went from 18 to 5 billion) and is attributable to the progressive downsizing of consistencieswhich reduced the need for massive transfers and allowed the adoption of non-performing loan management strategies based on a more balanced contribution of other management levers, such as internal recovery.

The improvement also continues disposal times in place since 2015, which benefits both from the reduction in amounts and low rates of entry into non-performing loans, and from the progress achieved by intermediaries in the management of these loans. The updated data shows that the share of positions closed within three years of classification suffering is equal to 88%, the highest value observed so far.

Compared to previous years, the use of securitisations in relation to the total of sales was limited, also in consideration of the fact that from 14 June 2022 the GACS they are no longer available. The defaults probable sold decreased to 4 billion, down 3 billion compared to 2022.

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