Featured Product

    EBA Seeks Views on Revisions to Nonperforming Loan Data Templates

    May 04, 2021

    EBA published a discussion paper on review of the standardized nonperforming loans (NPL) transaction data templates, along with the proposed revised NPL data templates. EBA is improving the NPL data templates as a key action in facilitating sales of NPLs and the functioning of the secondary markets for NPLs. The NPL templates are being streamlined to help banks better prepare as part of their NPL management strategies in the aftermath of the COVID-19 pandemic, while addressing information asymmetries to promote price discovery between buyers and sellers. The comment period on this discussion paper ends on August 31, 2021 and EBA expects to published the revised version of the data templates by December 2021.

    With this consultation, EBA opens a discussion with market participants on a number of aspects of the templates such as the design, data fields to be included, and their criticality and availability. The discussion paper proposes a number of changes to the existing templates, such as restructuring of the data categories, design of asset classes, reduction of data fields, and categorization of these data fields as critical and non‐critical, and presents proportionality considerations. The revised templates, as presented in this discussion paper, reduce the number of data fields to 230 from 462 in the existing version of the templates and reduce the number of critical cells from 155 to a range of 30–70 (depending on the asset class). Data fields cover the same seven asset classes of the existing version of the templates. In addition to these changes, the 17 data categories in the existing version of the templates have been reduced and restructured into the following five templates to simplify their use for market participants: 

    • Counterparty template covers information on counterparty group and the counterparty.
    • Relationship template merges, in a single template, any relationship, such as borrower‐loan, tenant‐lease, and guarantor‐guarantee, that the contractual agreement may imply. The template also indicates the relationship between contractual agreement and any property or non‐property collateral.
    • Financial instrument template merges data on financial instrument for loan and lease contracts as well as any forbearance information applicable.
    • Collateral and enforcement template covers data on any property and non‐property collateral related to contractual agreement on the financial instrument as well as any relevant information on the enforcement procedures that may apply to collateral.
    • Collection and repayment template covers information on external collection and historical collection and repayment schedule related to the financial instrument. Certain data fields with respect to the payment schedule require information for the next 36 months while data fields related to historical balances require information on payment history for the past 36 months.

    Annexes to the discussion paper contain templates and instructions for NPL data, present data dictionary, and explain changes with respect to the existing version of the NPL data templates. The proposed revisions to the templates are based on the user experience and feedback from various market participants and are in response to the December 2020 communication from EC on tackling NPLs in the aftermath of the COVID-19 crisis. The revisions will enable price discovery in a consistent way across the single market. EBA will await the finalization of the draft Directive on credit servicers, credit purchasers, and the recovery of collateral. In case the final version of that Directive mandates EBA to develop implementing technical standards specifying data templates for provision of information from NPL sellers to purchasers, EBA will later issue a consultation paper on the draft standards, with the revised templates developed following this discussion paper forming the basis of this consultation paper. 

     

    Related Links

    Comment Due Date: August 31, 2021

    Keywords: Europe, EU, Banking, NPL, COVID-19, Credit Risk, Reporting, Templates, Secondary Market for NPLs, EBA

    Featured Experts
    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514