PWC’ Navigating Tranquility, a report about the Italian NPL market says that the Italian credit servicers market is consolidating (see here a previous post by BeBeez). The report points out that M&A triggers are the scarcity of secured NPEs, the abundance of unsecured granular exposures and UTPs that are more expensive to acquire and to handle and therefore require a longer cost/benefit analysis, and the portafolios tails, ie the exposures that are more difficult to manage. Such conditions require skills, technology and diversification.
The Italian Government transposed the EU’s NPL Secondary Market Directive on credit managers and credit buyers (see here a previous post by BeBeez). Such a directive aims to implement a liberalization of the NPEs sales by lenders to credit purchasers and to regulate the relationship between purchasers, credit managers and, where appropriate, credit management service providers while introducing specific debtor protection rules (disclosure requirements, rules of conduct, establishment of a new supervisory register, complaints).
