The European Central Bank called for the implementation of transaction platforms as a way to help banks and investors overcome hurdles in selling bad loans.
An electronic system that provides data and transaction services for non-performing loans could spur new investors to enter the market, the ECB said on Monday in a special feature from its Financial Stability Review. Improving market liquidity would allow banks to achieve better prices for NPL sales, preserve their capital and mitigate financial-stability risks, the ECB said.