This study examines the methods applied for the NPLs management and their effectiveness in the European banking sector. In addition, we investigate the new accounting standard- IFRS 9- that its adoption has become mandatory since January 1st 2018 for all financial institutions, and its impact on the NPLs. From the assessment of the four systemic Greek banks, we find that IFRS 9 has a considerable impact on the loan loss provision and consequently their capital adequacy. It should be mentioned, that for some banks the effect of IFRS 9 on capital ratios was more significant and as a result they barely managed to reach the minimum requirements. Finally, through the analysis of KPIs for the four Greek systemic banks, we assess the effectiveness of NPLs management and the methods that have already been implemented.
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