What factors drive the performance of national asset management companies?
By Emilios Avguleas, Rym Ayadi, Marco Bodellini, Barbara Casu, Willem Pieter de Groen and Giovanni Ferr
In the past decade, asset management companies (AMCs) have been an effective tool for relieving banks of large portfolios of non-performing loans (NPLs). Managed over time, AMCs can reduce t he financial burden on the overall system. This paper is based on the existing literature and EU experiences of national AMCs created in the aftermath of the global financial crisis. It discusses the advantages and disadvantages of using A MCs, and considers the key elements in their design. Non-performing loans – new risks and policies?What factors drive the performance of national asset management companies?This paper was prepared by t h e Economic Governance Support Unit (EGOV) at the request of the Committee on Economic and Monetary Affairs (ECON).