In the medium term, the deterioration in banks’ balance sheets will depend on how quickly our economy is able to exit from this current difficult phase. The build-up of bad debt until 2015 was the result of two severe recessions that occurred in rapid succession.
Serious deficiencies in the procedures used by intermediaries to manage NPLs have also had an impact, although important steps forward have been taken in the last five years, in part thanks to the development of the secondary market.