World Economy

Italian Bank Asked to Reduce NPLs

Italian Bank Asked to Reduce NPLsItalian Bank Asked to Reduce NPLs

The European Central Bank has written to Italy’s Banca Monte dei Paschi di Siena asking for a new three-year business plan that would require it to reduce non-performing loans to an adequate level, CNBC reported. The request means the bank would have to shed bad loans worth around €10 billion ($11 billion) and raise targets set only last year in its business plan through to 2018. Monte dei Paschi has the highest proportion of bad debts among Italian banks, at 41% of its loan book.