European Parliament (EP) published a report that discusses the EC package on the proposal for a directive aimed at fostering NPL secondary markets and easing collateral recovery from secured loans. In March 2018, EC had adopted a comprehensive package of measures, including a proposal for a directive aimed at fostering NPL secondary markets and easing collateral recovery from secured loans.
Post-crisis, many EU banks have accumulated high volumes of non-performing loans (NPLs) in their balance sheets. Although almost halved in comparison to the December 2014 level, the ratio between NPLs and the total loans extended by EU banks (NPL ratio) remains historically high when measured against the ratios of other advanced economies. High levels of NPLs require banks to hold higher amounts of regulatory capital and pay a risk premium on liquidity markets, as a result of which their profitability and growth prospects diminish. To tackle this issue, a number of different initiatives have been adopted both at the national and EU levels. This report examines the state-of-play of the implemented and ongoing issues in the area of NPLs.
Related Link: Report
Keywords: Europe, EU, Banking, NPLS, Credit Risk, Regulatory Capital, Secondary Market for NPLS, European Parliament
Previous ArticleOCC Consults on Company-Run Stress Test Requirements for Banks
Next ArticleFSB Publishes Its Work Program for 2019
The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.
The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.
The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.