EU plans insolvency early warning alerts to cut banks' bad loans

Brussels

AN external early warning system for companies at risk of insolvency is central to a European Commission's draft proposal to cut the region's bankruptcy problem and help banks recoup bad loans.

Non-performing loans (NPLs) on the eurozone's main lenders' balance sheets neared one trillion euros (S$1.5 trillion) last year, about 9 per cent of the bloc's gross domestic product, hitting banks' ability to make money on corporate lending.