EBA Finalizes Guidelines on Disclosure of Non-Performing Exposures

The guidelines set enhanced disclosure requirements and uniform disclosure formats applicable to credit institutions' public disclosure of information regarding non-performing exposures, forborne exposures, and foreclosed assets. The proportionality principle applies to the guidelines and is based on the significance of the credit institution and the level of non-performing loans. For the credit institutions with a gross NPL ratio at or above 5%, the guidelines aim to provide a better insight on the distribution and features of the institutions' problematic assets, the quality and value of the collaterals, backing them and the efficiency of the institution's recovery function. The guidelines are intended to foster transparency, providing meaningful information to market participants on the quality of credit institutions' assets and to address any potential asymmetries of information in a consistent and comparable way.

EBA is also developing new supervisory reporting requirements on non-performing exposures and these have been developed ensuring full alignment between the disclosure templates (in this guideline) and the supervisory reporting data. The disclosures in these guidelines will allow market participants and stakeholders to have a better picture of the quality of the banks' assets, the main features of their non-performing and forborne exposures, and in the case of more troubled banks, the distribution of the problematic assets and the value of the collateral backing those assets. The guidelines apply to credit institutions that are subject to all or part of the disclosure requirements specified in the Capital Requirements Regulation (CRR).

Related Links

• Press Release
• Guideline (PDF)
• Disclosure Templates (XLSX)

Effective Date: December 31, 2019

Keywords: Europe, EU, Banking, Non-performing Exposures, NPLs, Disclosure, Proportionality, CRR, EBA