Based on the recent European regulatory policies on non-performing loans (NPL), the dissertation 'Non-Performing Loans: Determinants-Default-Divestiture' presents four stand-alone research papers on the determinants, default and divestiture of NPL, which explore the effectiveness of the proposed restructuring mechanisms. To begin with, determinants of the situation described by the term NPL are diligently examined, with the author employing a systematic literature review at the levels of macroeconomics, banks and loans. Subsequently, three empirical research studies are devoted to an analysis of security pricing in reaction to NPL divestiture activity in the European equity and debt capital market. The results offer the banking industry as well as the EU and its member states a nuanced idea of how to deal with large amounts of risky assets in times of constantly changing economic circumstances.