EC Welcomes Agreement on Rules on Secondary Market for NPLs
EC welcomes the political agreement between the European Parliament and the Council on the proposal for a Directive on credit servicers and credit purchasers. The agreement concerns rules related to the secondary market for non-performing loans (NPLs) while the remaining part of the proposed work is underway in the European Parliament; this part seeks to facilitate the recovery of collateral from businesses to increase their chances of obtaining credit.
One of the key objectives of the Directive on credit servicers and credit purchasers, which was adopted in 2018, is to improve the access and transparency of secondary markets for NPLs. The Directive creates common reporting requirements for credit purchasers and an obligation to appoint a credit servicer for consumers and third-country investors. In this way, the new rules will create a Single Market for credit purchasers and credit servicers. This will foster competition, raise the average sale price of NPLs, and significantly reduce servicing costs for the benefit of borrowers. In addition, the Directive amends the Consumer Credit Directive and Mortgage Credit Directive. These amendments ensure that consumers will benefit from forbearance measures, are duly informed when the credit is transferred, and are able to keep the same contractual rights they had with the credit originators.
Related Links
Keywords: Europe, EU, Banking, NPLs, Credit Risk, European Parliament, European Council, Secondary Market for NPLs, EC
Previous Article
EBA Updates List of Risk Indicators and Risk Analysis ToolsRelated Articles
APRA Issues Interim Update to Policy Priorities for 2021 and Beyond
In a letter addressed to the industry, the Australian Prudential Regulation Authority (APRA) set out an updated schedule of policy priorities for the banking, insurance, and superannuation industries.
EBA Publishes Single Rulebook Q&A, Launches Transparency Exercise
The European Banking Authority (EBA) published answers to 29 questions in the Single Rulebook Question and Answer (Q&A) tool in September.
EC Adopts Solvency II and Resolution Rules Package for Insurers
The European Commission (EC) adopted a comprehensive review package of Solvency II rules in the European Union.
OCC Issues Booklets on Regulatory Reporting and Earnings
The Office of the Comptroller of the Currency (OCC) issued Versions 1.0 of the "Earnings" and "Regulatory Reporting" booklets of the Comptroller's Handbook.
ECB Sets Out Results of Economy-Wide Climate Stress Tests
The European Central Bank (ECB) published results of its economy-wide climate stress test, which aimed to assess the resilience of non-financial corporates and euro area banks to climate risks.
EBA Examines Implications of Increasing Use of Digital Platforms in EU
The European Banking Authority (EBA) published a report on the use of digital platforms in the banking and payments sector in European Union.
HKMA Issues Updates on Policy Measures Intended to Ease COVID Impact
The Hong Kong Monetary Authority (HKMA) published updates on the policy measures that were announced in context of the ongoing pandemic.
ISDA Responds to BCBS Proposal on Treatment of Cryptoasset Exposures
The International Swaps and Derivatives Association (ISDA), along with several other associations, submitted a joint response to the Basel Committee on Banking Supervision (BCBS) consultation on preliminary proposals for the prudential treatment of cryptoasset exposures.
BIS Quarterly Review Discusses Developments in Fintech and ESG Space
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
BCBS to Consult on Supervisory Practices for Climate Risks by Year-End
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
