Featured Product

    ECB Reviews Non-Performing Loan Regimes in Euro Area Countries

    June 30, 2017

    ECB published its second stocktake of national supervisory practices and legal frameworks related to non-performing loans (NPLs) in the euro area. The report summarizes the key findings of an ECB stocktaking exercise, which was conducted to identify the range of practices related to NPL workout in all Single Supervisory Mechanism countries. The report provides a comprehensive view of the practices for treating NPLs in the euro area as at December 31, 2016 and seeks to identify key supervisory practices and guidance, in addition to current regulation and obstacles (legal or otherwise) related to the workout of NPLs.

    The stocktake reveals that progress has been made within the Single Supervisory Mechanism to address the NPL issue from a supervisory perspective and the overall value of the NPL stock has decreased since the publication of the first stocktake. One of the key lessons from this analysis is that stakeholders should make preparations in quieter times so that frameworks for managing NPLs are robust from the outset. It is necessary to be proactive and prepared before NPL levels become elevated. Current legal backlogs related to insolvency can be traced back to the failure to establish out-of-court settlement mechanisms before NPL levels became elevated. Consequently, banks in some countries cannot resolve NPL issues efficiently and their NPLs have a negative impact on their performance. Some changes have been introduced to legal frameworks since the publication of the first stocktake; however, these changes have been largely incremental and it is too early to assess their effectiveness. 

     

    The first stocktake was published in September 2016 and it covered the national supervisory practices and legal frameworks related to NPLs in Cyprus, Greece, Ireland, Italy, Portugal, Slovenia, Spain, and Germany. This second stocktake covers the remaining 11 countries participating in European banking supervision. These stocktakes are the result of joint efforts by the ECB and the national competent authorities, which collectively supervise more than 4,000 banks in the euro area.

     

    Related Links

    Second Stocktake Report (PDF) 

    First Stocktake (PDF)

    Keywords: ECB, NPL, Europe, Banking, Stocktake Report, SSM

    Related Articles
    News

    FSB Publishes List of Global Systemically Important Banks for 2019

    FSB published the 2019 list of global systemically important banks (G-SIBs), using the end-2018 data and an assessment methodology designed by BCBS.

    November 22, 2019 WebPage Regulatory News
    News

    EBA Publishes Roadmap on Risk Reduction Measures Package

    EBA published a set of roadmaps outlining the approach and timelines for delivering the mandates stemming from the Risk Reduction Measures Package adopted by the European Council and European Parliament on May 20, 2019.

    November 21, 2019 WebPage Regulatory News
    News

    EBA Consults on Initial Reporting Requirements for Market Risk

    EBA launched a consultation on the implementing technical standards on supervisory reporting requirements for market risk.

    November 21, 2019 WebPage Regulatory News
    News

    FED Proposes to Extend Initial Compliance Dates Under SCCL Rule

    FED published a proposal to extend, by 18 months, the initial compliance dates for foreign banks subject to the single-counterparty credit limit (SCCL) rule.

    November 20, 2019 WebPage Regulatory News
    News

    CBIRC to Strengthen Supervisory and Policy Support for SME Services

    CBIRC released a notification on strengthening supervision and guidance to enhance the quality and efficiency of financial services for "small and micro-enterprises" (SMEs).

    November 20, 2019 WebPage Regulatory News
    News

    FED Adopts Proposal to Implement Reporting Form for SCCL

    FED adopted a proposal to implement the Single-Counterparty Credit Limits (SCCL) reporting form FR 2590.

    November 20, 2019 WebPage Regulatory News
    News

    APRA Publishes Approach to Regulating and Supervising GCRA Risks

    APRA published an information paper that sets out a more intensive regulatory approach to transform governance, culture, remuneration, and accountability (GCRA) practices across the prudentially regulated financial sector.

    November 19, 2019 WebPage Regulatory News
    News

    US Agencies Update Rule on Derivative Contracts Exposure Calculation

    US Agencies (FDIC, FED, and OCC) announced a final rule updating the way certain banking organizations are required to measure counterparty credit risk for derivative contracts under their regulatory capital rules.

    November 19, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Rule to Amend Treatment of HVCRE Exposures

    US Agencies (FDIC, FED, and OCC) finalized a rule to modify the treatment of high volatility commercial real estate (HVCRE) exposures, as required by the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

    November 19, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Changes to Rule on Supplementary Leverage Ratio

    US Agencies (FDIC, FED, and OCC) finalized changes to the capital requirement for banking organizations predominantly engaged in custodial activities, as required by the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

    November 19, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4177