It is really true: The Bank sees a marketplace where ‘ bad loans ‘ are offered. The bank is thinking of a digital platform on which holders of loans come into contact with investors and banks.
Bank seeks investor who wants to buy bad loan
A marketplace where banks / investors can offer their bad loans, that idea may not be that bad. The European Central Bank proposes that sufficient information about the loans should therefore be released. It will then have to be easier to trade it. With such a digital platform, more and more investors are turning to this type of loans, according to the Bank.
Better prices and stability
The European Central Bank therefore has ears to an online marketplace on which worse loans can be sold or offered. Once such a marketplace exists, banks and investors will be more likely to buy and sell. And a better market operation will undoubtedly lead to cheaper loans . This will automatically provide extra stability on the financial markets.
Banks have to reduce bad loans
The European Central Bank has been calling for years for banks to stop, reduce and / or sell the purchase of bad loans. The idea of a digital marketplace for unreliable loans fits in well with this. It will lead to increasing confidence among investors. At present, all European banks together have a total of around 921 billion euros of bad loans under management. Do not worry: That amounts to about 6% of all loans in Europe. The slogan ‘ borrowing money costs money ‘ also applies to the banks that are stuck with this.