Within the broader category of NPLs, provisions for “sofferenze” (loans to debtors in full distress) reach 60 per cent of gross amounts. Moreover, around two thirds of NPLs are collateralised. Increases in capital ratios have also been substantial. Provisioning levels for NPLs are currently in line with  5  IMF, 2015b.
Among these risks is the possibility that shifting expectations concerning U.S. interest rates could lead to more volatility in financial markets and the value of the dollar, intensifying spillovers to other economies, including emerging market economies.