Italy: coverage ratio of non-performing loans 2015-2022
The coverage ratio for non-performing loans (NPLs) in Italy did not change significantly from 2021 to three first quarters of 2022. The coverage ratio peaked in 2018 and it has remained stable since then. This indicator shows the value of loss provisions as a share of the bank's NPLs. Because of that, banks with a high NPL coverage ratio are more likely to be able to absorb losses. The type of client with most of the bad loans in Italy were businesses, with mortgages and consumer credit only representing a small share of the total. Romania had the highest coverage ratio of NPL in the EU.
