Non-Performing Loans and Resolving Private Sector Insolvency: Experiences from the EU Periphery and the Case of Greece (Palgrave Macmillan Studies in Banking and Financial Institutions)

This book explores the issue of private sector over-indebtedness following the recent financial crisis. It addresses the various challenges for policymakers, investors and economic agents affected by applied remedial policies as the private non-financial sector in Europe continues to face increased challenges in servicing its debt, with the problem mainly concentrated in several countries in the EU periphery and Eastern Europe. Chapters from expert contributors address reduced investment as firms concentrate on deleveraging and repairing their balance sheets, curtailed consumer spending, depressed collateral values and weak credit creation. They examine effective policies to facilitate private sector debt restructuring which may involve significant upfront costs in terms of time to implement and committed budgetary resources, as well as necessary reforms required to improve the broader institutional framework and judicial capacity. The book also explores the issue of over indebtedness in the household sector, contributing to the literature in establishing best practice principles for household debt.-- Provided by publisher Front Matter ....Pages i-xxvi Introduction (Platon Monokroussos, Christos Gortsos)....Pages 1-14 Front Matter ....Pages 15-15 Non-performing Loans: Challenges and Options for Banks and Corporations (Rodrigo Olivares-Caminal, Andrea Miglionico)....Pages 17-45 Non-performing Loans: A Review of the Literature and the International Experience (Konstantinos I. Nikolopoulos, Andreas I. Tsalas)....Pages 47-68 Front Matter ....Pages 69-69 The Spanish Experience (Ana Rubio, Olga Gouveia, José María Álvarez)....Pages 71-92 Non-performing Loans in Ireland: Property Development Versus Mortgage Lending (Seamus Coffey)....Pages 93-110 The Nordic Experience: The Case of Denmark in 2005–2015 (Niels Storm Stenbaek)....Pages 111-125 The Cyprus Experience in Dealing with Private Sector NPLs (Marios Clerides, Michalis Kammas, George Kyriacou)....Pages 127-156 Front Matter ....Pages 157-157 The Road to Recovery: Are Greek Banks Able to Finance Greece’s Economic Recovery? (Nikolaos V. Karamouzis)....Pages 159-179 The Determinants of Loan Loss Provisions: An Analysis of the Greek Banking System in Light of the Sovereign Debt Crisis (Platon Monokroussos, Dimitrios Thomakos, Thomas A. Alexopoulos, Eleni Lydia Tsioli)....Pages 181-225 Micro-behavioral Characteristics in a Recessionary Environment: Moral Hazard and Strategic Default (Ioannis Asimakopoulos, Dimitris Malliaropulos, Panagiotis K. Avramidis, Nickolaos G. Travlos)....Pages 227-253 Financial Distress, Moral Hazard Aspects and NPL Formation Under a Long-Lasting Recession: Empirical Evidence from the Greek Crisis (Panayotis Kapopoulos, Efthymios Argyropoulos, Kalliopi-Maria Zekente)....Pages 255-274 Non-performing Loans in the Greek Banking System: Navigating Through the “Perfect Storm” (Paul Mylonas, Nikos S. Magginas)....Pages 275-306 Characteristics and Possible Solutions to Problems Related to Loans to SMEs in Greece (Nikolaos Vettas, Sophia Stavraki, Michalis Vassiliadis)....Pages 307-333 Front Matter ....Pages 335-335 Existing Corporate and Household Insolvency Frameworks: Characteristics, Weaknesses and Necessary Reforms (Spyros Pagratis, Christina Lolou, Nikolaos Vettas)....Pages 337-362 Financial Inclusion: An Overview of Its Various Dimensions and Its Assistance in Reducing Private Sector Insolvency (Christos V. Gortsos, Vasilis Panagiotidis)....Pages 363-393 Post-Crisis Corporate Insolvency and Creditor Rights Greece: An Assessment of the Post-Crisis Corporate Insolvency Framework (Constantinos N. Klissouras)....Pages 395-429 Back Matter ....Pages 431-438