Menu Products Sign In search Commentary Evolution of European Banks' NPLs and NPL Securitisations Amid COVID-19 Nonperforming Loans Summary The European nonperforming loan (NPL) securitisation market continued to support the divestment of NPLs from banks and offered access to distressed investments for investors in 2020. Despite the Coronavirus Disease (COVID-19) lockdowns, there was a considerable supply of public and private NPL transactions from multiple jurisdictions over 2020. In this commentary, we focus on how the markets in the key European NPL securitisation jurisdictions (Italy, Greece, Spain, Portugal, Ireland, and Cyprus) developed in the last 18 months and, among other things, we discuss: -- The evolution of key metrics, levels of NPL, loans under moratoria, and the role of securitisation, as well as direct sales in reducing the NPL stock; -- The analysis of the evolution of publicly rated NPL-backed bond issuance; and -- Recent NPL securitisation transactions in 2020/2021 and emerging trends. “The comprehensive response of the European governments have so far been effective in preventing an increase in NPLs in the short term. As the moratoria and public guarantee schemes expire and other measures reverse, we expect NPLs to increase but the deterioration will depend on various factors, including the country's economic recovery.” said Sinem Erol-Aziz, Vice President, European NPL. Available Documents Evolution of European Banks' NPLs and NPL Securitisations Amid COVID-19 Nov 17, 2021Nonperforming Loans Contacts Sinem Erol-Aziz Vice President, Credit Ratings, European NPL +44 203356 x1501 sinem.erol-aziz@morningstar.com Maria Rivas Senior Vice President - Global FIG +44 20 7855 6656 maria.rivasescrigas@dbrsmorningstar.com Alessio Pignataro Senior Vice President, Head of European NPL +44 20 7855 6602 alessio.pignataro@dbrsmorningstar.com Christian Aufsatz Managing Director, Head of European Structured Finance +44 20 7855 6664 christian.aufsatz@dbrsmorningstar.com More from DBRS Morningstar Related Events All Events Contact UsCareers Regulatory AffairsCode of ConductPrevious MCR Credit RatingsDisclaimerTerms and ConditionsPrivacy PolicyProprietary Rights The DBRS Morningstar group of companies consists of DBRS, Inc. (Delaware, U.S.)(NRSRO, DRO affiliate); DBRS Limited (Ontario, Canada)(DRO, NRSRO affiliate); DBRS Ratings GmbH (Frankfurt, Germany)(EU CRA, NRSRO affiliate, DRO affiliate); and DBRS Ratings Limited (England and Wales)(UK CRA, NRSRO affiliate, DRO affiliate). For more information on regulatory registrations, recognitions and approvals of the DBRS Morningstar group of companies, please see: http://www.dbrsmorningstar.com/research/highlights.pdf. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. The DBRS Morningstar group of companies are wholly-owned subsidiaries of Morningstar, Inc. © 2021 DBRS Morningstar. All Rights Reserved dbrsmorningstar.com Privacy Statement By accessing this website you agree to be bound by the DBRS Terms and Conditions and also the Privacy Policy. These are subject to change. Any changes will be incorporated into the Terms and Conditions or Privacy Policy posted to this website from time to time. Privacy (GDPR) Notice DBRS Morningstar reminds all users to consult the Privacy Policy in order to inquire on up to date information laws and new applicable regulations, including EU Directive 2016/679 on the General Data Protection Regulation. In the event you proceed to the website, you agree and consent to access the website, including providing your IP address and the terms and conditions on the usage of this website. OK