Feb. 3 (Bloomberg) -- European banks have almost doubled the amount of loans they are trying to sell to 2.5 trillion euros ($3.3 trillion) in the past year as they seek to cut balance sheets, according to a PricewaterhouseCoopers LLP.
“Banks have continued to develop their deleverage strategies, and have become more transparent in communicating these to the market,” Richard Thompson, a partner at London-based PwC, said in today’s report. “Over the past year PwC has seen an increasing volume of non-core loan portfolio transactions, a trend that is expected to continue.” Last year the figure was estimated to be 1.3 trillion euros, PwC said.
While the total amount of bad loans on European banks’ balance sheets has remained stable at about 518 billion euros in the past year, in countries such as Spain, Greece and Italy balances have been increasing, offsetting reductions in Germany and Ireland, PwC said.
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