The highest NPL ratios are present in those member states that were hit hardest by the economic crisis that followed the financial crisis after 2007.
The high stock of NPLs ties up operational capacity of the affected banks, it involves legal as well as administrative costs, and it weighs on the capacity of those banks to extend new loans to realise profits and to support economic recovery. 4. How to cope Ladies and gentleman, the financial world is clearly confronted with significant change and uncertainty.