ECB Finalizes Addendum to Guidance on Non-Performing Loans
ECB published the final addendum to the ECB Guidance to banks on non-performing loans (NPLs), which reflects comments received during public consultation. ECB also published the detailed comments submitted by stakeholders and a feedback statement setting out its consideration of those comments. The addendum specifies the supervisory expectations of ECB for prudent levels of provisions for new NPLs. The addendum is non-binding and will serve as the basis for supervisory dialog between the significant banks and the ECB Banking Supervision.
The addendum supplements the qualitative NPL guidance of ECB, which was published on March 20, 2017, and addresses loans classified as NPLs in line with the EBA’s definition after April 01, 2018. The ECB expectations in this addendum serve as starting point for the supervisory dialog. During the supervisory dialog, ECB will discuss, with each bank, divergences from the prudential provisioning expectations laid out in the addendum. After this dialog and taking into account a bank’s specific situation, ECB Banking Supervision will decide, on a case-by-case basis, whether and which supervisory measures are appropriate. The result of this dialog will be incorporated, for the first time, in the 2021 Supervisory Review and Evaluation Process (SREP). Banks are advised to use this time to prepare themselves and to review their credit underwriting policies and criteria to reduce the production of new NPLs.
Related Links
- Press Release
- Final Addendum on NPLs (PDF)
- Feedback Statement (PDF)
- Comments Received on Addendum
- Consultation on Addendum to ECB Guidance
Keywords: Europe, EU, Banking, NPLs, Addendum, Responses to Consultation, SREP, ECB
Previous Article
EC Proposes A Package of Measures to Tackle NPLs in EuropeRelated Articles
|
News
PRA Finalizes Reporting Amendments to Pillar 2 Liquidity FrameworkPRA published the final Policy Statement PS13/19 on regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK.
June 17, 2019
WebPage
Regulatory News
|
|
News
FSB Assesses Implementation of Compensation Standards and PrinciplesFSB published the sixth progress report on the implementation of its principles and standards for sound compensation practices in financial institutions.
June 17, 2019
WebPage
Regulatory News
|
|
News
IMF Publishes Reports on 2019 Article IV Consultation with IrelandIMF published its staff report and selected issues report under the 2019 Article IV consultation with Ireland.
June 17, 2019
WebPage
Regulatory News
|
|
News
EBA Updates Data on Deposit Guarantee Schemes in EUEBA published the 2018 data on two key concepts in the Deposit Guarantee Schemes Directive (DGSD)—namely, available financial means and covered deposits.
June 17, 2019
WebPage
Regulatory News
|
|
News
SNB Updates Form for Reporting Solvency Risk of CounterpartiesSNB published the survey (Form Release 5.01) and related documentation for reporting solvency risk of counterparties in the interbank sector (ARIS).
June 17, 2019
WebPage
Regulatory News
|
|
News
ISDA Studies Variation in Global Implementation of Margin RequirementsISDA published a paper that highlights the main areas of difference in the implementation of margin requirements for non-cleared derivatives across jurisdictions and makes recommendations on how to resolve these variations.
June 17, 2019
WebPage
Regulatory News
|
|
News
US Agencies Finalize Rule to Streamline Reporting for Small BanksUS Agencies (FDIC, FED, and OCC) adopted a final rule to streamline the regulatory reporting requirements for small institutions.
June 17, 2019
WebPage
Regulatory News
|
|
News
IAIS Consults on Revisions to IAIS Supervisory MaterialIAIS has launched a public consultation on revisions to the IAIS supervisory material.
June 14, 2019
WebPage
Regulatory News
|
|
News
IMF Paper on Implementing Prudential Standards in Developing EconomiesIMF published a working paper that provides practical guidance on how developing economies, including non-Basel Committee member countries, could incorporate international standards into their prudential framework.
June 14, 2019
WebPage
Regulatory News
|
|
News
EBA Single Rulebook Q&A: Second Update for June 2019EBA published answers to five questions under the Single Rulebook question and answer (Q&A) updates for this week.
June 14, 2019
WebPage
Regulatory News
|
