Upcoming Event

Feb
3
09:30

Tackling Europe’s non-performing loans crisis: restructuring debt, reviving growth

How can we connect the different initiatives for NPL resolution and identify an agenda that is shared between EU, national authorities and the private sector.

February 3, 2017, 9:30 am Bruegel, Rue de la Charité 33, 1210 Brussels Invitation-only | Chatham House Rule European Macroeconomics & GovernanceFinance & Financial Regulation Tags & Topics

Given a number of initiatives within the ECB, at EU and national level, NPL resolution has moved centre stage in the European policy discussions. Bank restructuring in key euro area countries in the context of the new resolution directive will need to rely on market-based solutions to distressed debt to a much greater extent.

The objective of the event is to connect the different initiatives in the banking, legal and restructuring fields, and to identify an agenda that is shared between EU, national authorities and the private sector.

This event is only open to a small number of slected invitees and Bruegel Members.  The held under Chatham House rule.

The speech of Vítor Constâncio will be on the record and livestreamed on this page starting at 13.45.

Schedule

Feb 03, 2017

9.00 – 9.30

Registration

9.30 – 11.15

Session 1: Deleveraging amidst low bank profitability: experiences and agendas

Welcome

Guntram B. Wolff, Director

11.15 – 11.30

Coffee break

Opening keynote address:

Thomas Wieser, Chair of Economic and Financial Committee and Eurogroup Working Group

Panel discussion

Marco Buti, Director-General, European Commission, DG ECFIN

Vítor Escária, Adviser to the Prime Minister of Portugal

Giorgio Gobbi, Head of Financial Stability Directorate, Bank of Italy

Boštjan Jazbec, Governor, Bank of Slovenia

Brendan McDonagh, CEO, Nama

11.30 – 12.45

Session 2: NPL resolution in the banking union: new momentum?

Opening remarks

Sharon Donnery, Deputy Governor, Central Bank of Ireland and Chair of the SSM NPL Task Force

12.45 – 13.45

Lunch

13.45 – 14.15

Keynote address: “Resolving Europe’s NPL burden: a foundation for growth”

Vítor Constâncio, Vice President, ECB

Panel discussion

Arne Berggren, Chief Risk Officer, Bank of Cyprus

Piers Haben, Director of Oversight, European Banking Authority

Carola Schuler, Managing Director, Bank Analytics, Moody’s

Comments

Chair: Guntram B. Wolff, Director

Maria Demertzis, Deputy Director

Alexander Lehmann, Visiting Fellow

14.15 – 15.30

Session 3: Attracting investors into distressed debt and restructuring situations

Opening remarks

Julien Wallen, Managing Director, Blackrock

Panel discussion

Chair: Alexander Lehmann, Visiting Fellow

Iker Beraza, Chief Financial Officer, Sareb

John Davison, CEO, KKR/Pillarstone

TJ Lim, Deputy Chief Risk Officer, Unicredit Group

Emanuele Rosetti Zannoni, Managing Director, Cerberus

15.30 – 15.45

Coffee break

15.45 – 17.00

Session 4. Bank restructuring: institutional innovations

Panel discussion

Corso Bavagnoli, Head of Department for Financing of the Economy, French Treasury

John Berrigan, Deputy Director-General, DG for Financial Stability, Financial Services and Capital Markets Union

Gert-Jan Koopman, Deputy Director General, European Commission, DG COMP

Reza Moghadam, Vice Chairman of Global Capital Markets, Morgan Stanley

17.00

End

Speakers

Bavagnoli

Corso Bavagnoli

Head of Department for Financing of the Economy, French Treasury

Iker Beraza

Chief Financial Officer, Sareb

Arne Berggren

Chief Risk Officer, Bank of Cyprus

John_Berrigan picture-bio

John Berrigan

Deputy Director-General, DG for Financial Stability, Financial Services and Capital Markets Union

buti-picture

Marco Buti

Director-General, European Commission, DG ECFIN

Vítor Constâncio

Vice President, ECB

John Davison

CEO, KKR/Pillarstone

MariaDemertzis1 bw

Maria Demertzis

Deputy Director

Sharon Donnery

Deputy Governor, Central Bank of Ireland and Chair of the SSM NPL Task Force

Vítor Escária

Adviser to the Prime Minister of Portugal

Giorgio Gobbi

Head of Financial Stability Directorate, Bank of Italy

Piers Haben

Director of Oversight, European Banking Authority

Boštjan Jazbec

Governor, Bank of Slovenia

koopman-photo

Gert-Jan Koopman

Deputy Director General, European Commission, DG COMP

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Alexander Lehmann

Visiting Fellow

TJ Lim

Deputy Chief Risk Officer, Unicredit Group

Brendan McDonagh

CEO, Nama

picture1

Reza Moghadam

Vice Chairman of Global Capital Markets, Morgan Stanley

Emanuele Rosetti Zannoni

Managing Director, Cerberus

Schoenmaker pic

Dirk Schoenmaker

Senior Fellow

Carola Schuler

Managing Director, Bank Analytics, Moody’s

Julien Wallen

Managing Director, Blackrock

Wieser pic

Thomas Wieser

Chair of Economic and Financial Committee and Eurogroup Working Group

Guntram B. Wolff

Guntram B. Wolff

Director

Location & Contact

Bruegel, Rue de la Charité 33, 1210 Brussels

Matilda Sevón

Matilda Sevon

matilda.sevon@bruegel.org

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Blog Post

sd-12177-_0028bea2-web

Can public support help Europe build distressed asset markets?

Distressed asset investors can relieve banks of their NPL overhang and offer valuable restructuring expertise, although banks will need to realise a further valuation loss. Regulators could do a lot to support the growth of this market.

By: Alexander Lehmann Topic: Finance & Financial Regulation Date: November 29, 2016
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Blog Post

sd-12177-_0028bea2-web

Credit recovery in Spain: NPL resolution was essential, but success depended on broader sector reform

Growth in Spain again exceeded expectations this year, and bank deleveraging appears to have reached an end. Addressing non-performing loans was a precondition for recovery, and it required comprehensive financial sector reform.

By: Alexander Lehmann Topic: European Macroeconomics & Governance Date: November 21, 2016
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Opinion

Silvia Merler

An Italian take on banking crisis

The year 2016 has not been good to Italian banks. While resilient to the first wave of financial crisis in 2008, due to their low exposure to US sub-prime products and to the fact that Italy did not have a pre-crisis housing bubble, they have been suffering much from the euro sovereign crisis and the ensuing deteriorating economic conditions.

By: Silvia Merler Topic: Finance & Financial Regulation Date: October 27, 2016
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Blog Post

MariaDemertzis1 bw

A framework for thinking about bad loans

An important guiding principle in resolving non-performing loans (NPLs) should be to ensure that viable debt remains serviced, while non-viable debt gets resolved. We present here a framework to approach the issue.

By: Maria Demertzis Topic: Finance & Financial Regulation Date: October 18, 2016
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Blog Post

sd-12177-_0028bea2-web

ECB bank supervision cannot tackle debt restructuring single-handedly

The European Central Bank has begun to tackle a key symptom of banking sector fragility with its proposed guidelines on banks’ management of non-performing loans (NPLs). But detailed targets for the reduction of NPLs and prescriptions for the internal governance and management of distressed assets also represent a new style of more intrusive supervision. For the ECB to succeed in bank rehabilitation, a macroeconomic scenario should guide the deleveraging process, capacity needs to be built, and governments will need to support a more holistic restructuring effort.

By: Alexander Lehmann Topic: Finance & Financial Regulation Date: October 13, 2016
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Blog Post

Silvia Merler

Italy’s bail-in headache

Weakness in the Italian banking sector is a major concern for the euro area. Retail investors stand to lose out if BRRD bail-in rules are strictly applied, and many in Italy are seeking an exception for political reasons. However, Silvia Merler argues that this would set a dangerous precedent. She calls for an orderly bail-in, followed by compensation for investors mis-sold unsuitable products.

By: Silvia Merler Topic: Finance & Financial Regulation Date: July 19, 2016
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Blog Post

Schoenmaker pic
Nicolas Véron

European banking supervision: compelling start, lingering challenges

The new European banking supervision system is broadly effective and, in line with the claim often made by its leading officials, tough and fair, but there are significant areas for future improvement.

By: Dirk Schoenmaker and Nicolas Véron Topic: Finance & Financial Regulation Date: June 8, 2016
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Blueprint

cover bp xxv

European banking supervision: the first eighteen months

The Blueprint provides a review of the first 18 months of European banking supervision. It reviews the overall situation and the situation in a number of euro-area countries. It provides important insights into the start of a new policy regime that involves profound change for the European banking landscape

By: Dirk Schoenmaker and Nicolas Véron Topic: Finance & Financial Regulation Date: June 8, 2016
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Blog Post

Silvia Merler
marcello-minenna-332795 (2)

Hard times for Italian banks

Silvia Merler and Marcello Minenna review the structure of of the recently adopted Italian guarantees scheme, and look at solutions implemented in other countries. They argue that rather than spending time revising rules that have already been agreed, alternatives should be considered to make the guarantee schemes as effective as possible.

By: Silvia Merler and Marcello Minenna Date: February 17, 2016
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Blog Post

Silvia Merler

Bad banks and rude awakenings: Italian banks at a crossroads

Italian banks have recently come under market pressure, as investors seemed to have grown worried about the sector. This triggered a speed-up in the discussion between the Italian government and the European Commission about the creation of a “bad-bank”, on which a decision is reportedly due this week.

By: Silvia Merler Topic: European Macroeconomics & Governance Date: January 26, 2016
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Opinion

Guntram B. Wolff

Getting eurozone deposit insurance right promises benefits

EU-wide security of savings must be considered in order to take banking union seriously. Banks' holdings of government bonds must be limited.

By: Guntram B. Wolff Topic: Finance & Financial Regulation Date: January 5, 2016
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Blog Post

Bennet Berger

Non-performing loans in Italy and selected European countries

Vulnerabilities in the Italian banking system are causing fears of a banking crisis to surface.

By: Bennet Berger Topic: Finance & Financial Regulation Date: December 18, 2015
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