EC welcomed the agreement reached among EU member states on new rules to develop secondary markets for sales of non-performing loans (NPLs). Additionally, European Council announced that the original proposal for the directive by EC also included a part on recovery of collateral. There was no agreement in the Council on this part of the directive. It is, therefore, not included in the Council position and will require further discussion at working level in the Council.
The Directive introduces a harmonized and less restrictive regime for credit purchasers and servicers and removes undue impediments to cross-border activity, while ensuring that the same level of consumer protection is maintained when a loan is sold by a bank. While this agreement is an important step forward, progress has been regrettably slower on complementary elements of the Directive that would increase the efficiency of enforcement regimes. EC announced that further work and discussion on these elements will be needed and should be prioritized in the next legislative cycle. However, given the urgent need to foster development of a well-functioning secondary market for NPLs, the draft rules approved by member states should still be finalized in the current legislative cycle.
Keywords: Europe, EU, Banking, NPLs, Secondary Market for NPLs, Credit Risk, European Council, European Parliament
Previous ArticleRBNZ Updates Strategy for Macro-Prudential Policy in New Zealand
Next ArticleBCBS Updates FAQs on Basel III Monitoring
HM Treasury notified that, after considering all responses, the government intends to bring forward further legislation, when the Parliamentary time allows, to address issues identified in the consultation on supporting the wind-down of critical benchmarks.
EIOPA launched the 2021 stress test for the insurance sector in EU.
UK authorities jointly published the third edition of Regulatory Initiatives Grid setting out the planned regulatory initiatives for the next 24 months.
EC is requesting feedback on the proposed Commission Delegated Regulation on the content, methodology, and presentation of information that large financial and non-financial undertakings should disclose about their environmentally sustainable economic activities under the Taxonomy Regulation.
OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.
Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.
ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.
ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.
BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.