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 ArticleHKMA Grants Three Virtual Banking Licenses in Hong Kong
Next ArticleBCBS Updates FAQs on Basel III Monitoring
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.