{"id":10058,"date":"2015-07-15T06:09:23","date_gmt":"2015-07-15T11:09:23","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10058"},"modified":"2015-07-15T06:09:23","modified_gmt":"2015-07-15T11:09:23","slug":"italy-non-performing-loans-hit-a-new-record-high","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10058","title":{"rendered":"Italy \u2013 Non-Performing Loans Hit a New Record High"},"content":{"rendered":"<h3 class=\"art-postheader\"><a title=\"Permanent Link to Italy \u2013 Non-Performing Loans Hit a New Record High\" href=\"http:\/\/www.acting-man.com\/?p=38535\" rel=\"bookmark\">Italy \u2013 Non-Performing Loans Hit a New Record High<\/a><\/h3>\n<p><strong>While all Eyes are on Greece, Italy\u2019s Banks are Drowning in Bad Debt<\/strong><\/p>\n<p>The real danger to the euro area probably doesn\u2019t emanate from Greece, but from two of its heavyweights, namely France and Italy.\u00a0<a href=\"http:\/\/derstandard.at\/2000019132046\/Faule-Kredite-in-Italien-auf-193-Mrd-Euro-gestiegen\">A small note in the European press<\/a>\u00a0reminds us that all is not well in at least one of these countries, least of all with its banks (currently this is only a \u201cpage 16 story\u201d, but it has great potential to eventually move to the front page).<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-38539\" src=\"http:\/\/www.acting-man.com\/blog\/media\/2015\/07\/NPLs-by-region.jpg\" alt=\"NPLs by region\" width=\"471\" height=\"500\" \/>Regional distribution of non-performing loans in Italy<\/p>\n<p>The note reads as follows:<\/p>\n<blockquote><p>\u201cRome \u2013 because of the recession of recent years and corporate bankruptcies, the total of bad loans has continued to rise in Italy.\u00a0<strong><em>According to Italy\u2019s banking association ABI, non-performing loans amounted to 193.7 billion euro in May, 25.1 billion more than in the same month in 2014. This is the highest level since 1996.<\/em><\/strong><\/p>\n<p><strong><em>Non-performing loans represent 10.1 percent of all loans granted by Italian banks, ABI said on Tuesday.\u00a0<\/em><\/strong>Especially small and medium enterprises continue to be under pressure due to bad loans, so will take a long time before banks will see the bad loan situation ease, the ABI report stated. Italian companies are currently struggling with the effects of the longest economic crisis since World War II and are therefore often no longer able to service their loans.\u201d<\/p><\/blockquote>\n<p>(emphasis added)<\/p>\n<p>If our calculator can be trusted, this means that\u00a0<em>bad loans in Italy\u2019s banking system have increased by roughly 14.9% over just the past year<\/em>\u00a0\u2013 by no means a peak crisis year, although Italy\u2019s listing economy continued to contract slightly.<\/p>\n<p>As the following chart shows (unfortunately we were only able to obtain this slightly dated version), Italian NPLs stood at \u20ac 165 bn. in Q1 2014. However, to this one must actually add all sorts of loans that are otherwise delinquent\/dubious or sub-standard, but haven\u2019t yet reached \u201cfull\u201d NPL status. These are summarized together with NPLs under the term\u00a0<em>impaired loans\u00a0<\/em>below.<\/p>\n<div>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Italy \u2013 Non-Performing Loans Hit a New Record High While all Eyes are on Greece, Italy\u2019s Banks are Drowning in Bad Debt The real danger to the euro area probably doesn\u2019t emanate from Greece, but from two of its heavyweights, namely France and Italy.\u00a0A small note in the European press\u00a0reminds us that all is not [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,175,195,279,280,1167,1464,6559,6170],"class_list":["post-10058","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-credit","tag-debt","tag-eu","tag-euro","tag-greece","tag-italy","tag-non-performing-loans","tag-pater-tenebrarum"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10058","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10058"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10058\/revisions"}],"predecessor-version":[{"id":10059,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10058\/revisions\/10059"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10058"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10058"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10058"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}