Featured Product

    EC Consults on Minimum Coverage Requirements Related to NPLs

    November 10, 2017

    EC issued a consultation on the minimum levels of capital that EU banks must set aside to cover incurred and expected losses on newly originated loans that turn non-performing. EC is gathering stakeholder views on the possible introduction of statutory prudential backstops against insufficient loan-loss coverage for new loans that turn non-performing as well as on the potential functioning, scope, design, and calibration of such prudential backstops. The consultation will be open until November 30, 2017.

    This initiative follows the comprehensive action plan to tackle the issue of non-performing loans (NPLs) agreed by all EU member states at the ECOFIN Council in July. Insufficiently provisioned NPLs are more likely to remain on bank balance sheets, which in turn may cast doubts on banks' future profitability, solvency, and ability to lend. The consultation seeks stakeholders' views on the possible introduction of minimum coverage requirements that would put EU-wide brakes on new NPLs by ensuring sufficient loan-loss coverage and seeks targeted input on how such requirements can best be designed. This will feed into the impact assessment that the EC is carrying out on the possibility of introducing such new rules as requested by the Council Action Plan on tackling NPLs in Europe and announced in the EC Communication on completing the Banking Union. The consultation and the impact assessment will help the EC complete a report, along with any legislative proposals, if needed.

     

    Related Links

    Comment Due Date: November 30, 2017

    Keywords: Europe, EU, Banking, NPL, Statutory Prudential Backstops, Minimum Coverage Requirements, Banking Union, EC

    Related Articles
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

    ESMA updated the reporting manual on the European Single Electronic Format (ESEF).

    July 09, 2020 WebPage Regulatory News
    News

    EBA Calls on Resolution Authorities to Consider Impact of COVID Crisis

    EBA published a statement on resolution planning in light of the COVID-19 pandemic.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    July 08, 2020 WebPage Regulatory News
    News

    ECB Guideline on Materiality Threshold for Credit Obligations Past Due

    ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.

    July 08, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-14 With Respect to PPP and CARES Act

    FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.

    July 08, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5458