Luiss and Gardant join forces for a new observatory on the non-performing loan market
The growing relevance and interest of Non-Performing Exposures in the Italian financial system
Luiss and Gardant will collaborate on a new Observatory for the NPE market, which was analyzed during the event
“The State of NPEs: A New Asset Class”
on the University Campus
Rome, May 12, 2022 - Gardant, Italy’s leading credit management operator, and the Luiss School of Law, the graduate law school at Luiss Guido University , announced during the event “The State of NPEs: A New Asset Class,” held this morning on the University campus, that they will collaborate to establish an Observatory for the Non-Performing Exposure market.
In the current scenario, where more than two-thirds of non-performing loans are “outside” the banking system, and where by 2023, out of a projected total of 430 billion NPEs, 113 billion will be on banks’ balance sheets and 317 billion will be held by investors and specialized players, the Observatory could serve as a useful tool for institutions, investors, specialized entities, and regulators to analyze the management and regulation of a market poised to significantly influence the economic and financial system.
Antonio Nuzzo, Director of the Luiss School of Law, stated: “Over time, the Italian economic and financial system has shifted its approach to non-performing loans from a value to be recovered to a value to be traded. Therefore, additional interests are emerging in the market that require protection and regulation. The Observatory aims to serve as a hub for collecting and analyzing data to pinpoint issues and identify suitable solutions, ensuring the system’s efficiency and balance.”
Flavio Valeri, Chairman of the Gardant Group, stated: “Since 2008, the year of the great crisis, non-performing loans have taken on a new identity, gradually evolving into a new asset class. In this new role, they have attracted the interest of institutional investors and specialized entities. The initiative by Gardant and the Luiss School of Law to establish an NPE Market Observatory is a necessary step to generate knowledge and, therefore, provide the tools to understand the dynamics underlying a market that is important for the country."