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AMCs and the cleansing of EU banks’ balance sheets

AMCs and the cleansing of EU banks’ balance sheets

The author presents a new conceptual approach to NPLs. This phenomenon currently accounts for about 1 trillion euros in the EU banks, overloaded with sovereign securities. Banks are the first fragile chain organizations, facing possible transnational destabilization effects in case of NPL crisis. In addition, excessive NPLs weaken banks' credit function due to lack of liquidity rotation.[…]