RINALDI VS ENRIA. THE VALUATION CRITERIA OF BANKS MUST BE ADAPTED TO THE CRISIS. Enria, no, debts must be cut down

27 October 20203 years ago babelfish

Telematic face to face between Antonio Maria Rinaldi and Andrea Enria, president of the supervisory board of the ECB.

First you will see the intervention of Professor Rinaldi, who highlights how the Covid-19 epidemic has given a very hard blow to an economy that was certainly not flourishing from the beginning: this will have repercussions on the banking system, which will show a strong fallout at the level of bad debts, the famous NPLs. In this case, it would not be necessary to review all the legislation related to their management in the banking system.

Enria replies but… in reality she gives very little. His view, curious for a banker, is that debt is bad for client company balance sheets, even stranded debt, the so-called NPLs. A paradoxical answer: banks live on loans, without which they have no profits, and companies that do not repay loans do so because they cannot. An answer, frankly, incomprehensible.

Have a good listening

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The article RINALDI VS ENRIA. BANKS 'VALUATION CRITERIA MUST BE ADAPTED TO THE CRISIS. Enria, no, we need to reduce debts comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/rinaldi-vs-enria-bisogna-adattare-i-criteri-di-valutazione-delle-banche-alla-crisi-enria-no-bisogna-abbattere-i-debiti/ on Tue, 27 Oct 2020 20:10:15 +0000.