The NPL market

The transaction market for non-performing loans

The European transaction market for non-performing loan portfolios has developed rapidly in recent years.

Market overview

Primary market
Primary market

approx. €370 billion (2024)

Secondary market
Secondary market

approx. €600 billion (2024)

Largest markets
Largest markets

France, Italy, Germany, Spain

The European NPL market

The European NPL market has grown significantly in recent years, driven by both regulatory requirements and increased transparency, which have made transactions more efficient. At the same time, technological innovation and the emergence of more specialised players have further professionalised the market. This development is important because a well-functioning NPL market strengthens financial stability and helps banks free up capital for new lending. Effective NPL management also helps borrowers find sustainable solutions to their debts more quickly.

Market drivers

New rules

The European NPL market has grown significantly in recent years, driven by both regulatory requirements and increased transparency, which have made transactions more efficient. At the same time, technological innovation and the emergence of more specialised players have further professionalised the market. This development is important because a well-functioning NPL market strengthens financial stability and helps banks free up capital for new lending. Effective NPL management also helps borrowers find sustainable solutions to their debts more quickly.