Featured Product

    EU Confirms Provisional Agreement on Rules on Secondary NPLs Market

    June 28, 2021

    The European Council Presidency and the European Parliament reached a provisional agreement on a new directive harmonizing rules for credit servicers and credit purchasers of non-performing loans (NPLs) issued by credit institutions. The directive standardizes the rules for credit servicers and credit purchasers across EU and facilitates NPL sales, even across national borders. The new rules are aimed to support the development of the secondary market for NPLs in EU, to allow banks to clean their balance sheets of bad loans, while ensuring that the sale does not affect the rights of borrowers. A designated authority in the home member state will authorize and supervise credit servicers, in close cooperation with the authorities of other member states.

    The provisional agreement was reached on the following key issues discussed during the negotiations:

    • Authorizing credit servicing activities, to ensure borrowers are treated fairly and diligently
    • Forbearance measures, to consider the rights and interests of consumers before starting enforcement proceedings

    A bank loan is generally considered non-performing when more than 90 days pass without the borrower paying the agreed installments or interests, or when it becomes unlikely that the borrower will reimburse it. Efficient management of NPLs is particularly important in the aftermath of the COVID-19 crisis to reduce risks on the balance sheets of banks and to enable banks to focus on lending to businesses and citizens, thus supporting economic recovery in EU.  The Parliament and the Council are expected to adopt the directive after legal-linguistic revision. After it is signed and published in the Official Journal of the European Union, the text should be transposed into national law within 24 months of the date of entry into force. 

     

    Related Links

    Keywords: Europe, EU, Banking, NPLs, Credit Risk, Secondary Market for NPLs, European Parliament, European Council, EC

    Related Articles
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Examines Asset Encumbrance in Banking Sector

    The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Publishes Methodological Guide to Mystery Shopping

    The European Banking Authority (EBA) published a methodological guide to mystery shopping.

    July 21, 2021 WebPage Regulatory News
    News

    APRA Issues Update on Capital Reform Policy Settings for Banks

    The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.

    July 21, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Assess Continuity Planning of Market Infrastructures

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.

    July 21, 2021 WebPage Regulatory News
    News

    ESMA Responds to Proposal Related to Sustainability Standards Board

    The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.

    July 21, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7283