This website uses cookies to offer you the best experience online. By continuing to use our website, you agree to the use of cookies. If you would like to know more about cookies and how to manage them please view our privacy policy 

Free trial

16 April 2019

Zombie firms and Europes productivity problem

John Scott

Europe’s productivity problem is partly due to the rise of zombie firms that crowd out growth opportunities for others. That’s according to an OECD report, created using data from Orbis, and also covered by the World Economic Forum (WEF).

The WEF article explores the tendency for weak banks to evergreen loans to zombie firms to avoid realizing losses on their balance sheet.

Key findings

  1. Zombie firms have a higher likelihood of being connected to a weak bank (see figure 2 below)
  2. The insolvency framework helps create a link between zombie firms and bank health
  3. More zombies means capital reallocation has less impact on productivity
  4. Zombie firms potentially crowd out credit to healthier and more productive firms
zombie firms weak banks

You may be interested in:

 
John Scott

John Scott, Director, Corporate Marketing

John is responsible for Bureau van Dijk’s digital and content team. He has 20 years’ experience as a B2B marketing leader across multiple industry sectors.

John is responsible for Bureau van Dijk’s digital and content team. He has 20 years’ experience as a B2B marketing leader across multiple industry sectors.

bvdi white logo

How Bureau van Dijk can help you

Certainty is a highly-prized commodity in business. Data might be getting bigger all the time, but this only makes extracting value from it more difficult.

In capturing and treating private company information we aim to give you more certainty – and help you make better decisions and work more efficiently.

 

 

Our solutions are designed to help different business challenges and streamline your workflow. Many of our customers blend our information with their own internal data to get a more complete picture of the companies in their ecosystem.

Try our more certain approach –
welcome to the business of certainty.