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Bank of Italy says 2016 average bad loan recovery rate at 34 pct
November 14, 2017 / 2:20 PM / a month ago

Bank of Italy says 2016 average bad loan recovery rate at 34 pct

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)

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