Abstract

The article examines the impacts of non performing loans on the economic stability and analyzes the benefits of a Banking Jubilee. In Italy in the last 3 years several bills have followed one another aimed at granting a form of debt relief to debtors to cope with the significant amount of impaired loans and allow thousands of families and many businesses to restart. The article also analyzes the consequences of the recent massive loan sales in the NPL sector. Sales are not a solution but only move the problem. The Banking Jubilee, on the other hand, if implemented under specific conditions, could realistically be the solution.