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Reuters: Italy’s small banks are being frozen out of NPL scheme


Adrian Cloake, Chief Investment Officer at LCM Partners features in an article by Reuters that examines how Italy’s small banks are being frozen out of the country’s non-performing loans (NPLs) securitisation framework by high costs and complex rules.

In many cases it might prove to be more practical and just as good value to them to sell the loans in an auction to a specialist buyer who has a servicer – as long as they are realistic on what the valuation is.

It’s probably more appropriate for the bigger names and not necessarily a tool for the smaller, regional banks who might struggle to get to the required data quality and scale.

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