Abstract

The launch of a European bad bank to clean up banks’ balance sheets from NPLs, in particular those generated by the Covid-19 pandemic, is extremely topical. However, the establishment of a European AMC risks violating both competition law and the provisions of the BRRD. Hence the EU Commission’s proposal to set up a network of national bad banks at a European level. By enhancing the lessons learned from the experience of some successful models, this work intends to formulate some proposals to overcome the main critical issues that, on a continental level, are holding back the establishment of a common scheme in the field of bad banking