Barclays On Italian Banks "NPLs Could Be The Sleeping Disease"

As the stock prices of Italian banks slide on the prospect of a “No” vote in the Italian referendum – an issue ValueWalk touched on a week ago – a Barclays report notes the non performing loan issue could be a self-fulfilling prophecy, creating a negative feedback loop. Steve Eisman On Italian Banks – You Are all Screwed Italy never addressed its non performing loan issue In the wake of the global financial crisis, many banks, particularly those in Italy, were left with a non-performing loan (NPLs) problem on their balance sheet. High NPLs tend to reduce bank lending by impacting three interrelated…