General Information & Client Services
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
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 Insights
News

EBA Single Rulebook Q&A: First Update for November 2018

EBA published answers to seven questions under the Single Rulebook question and answer (Q&A) updates for this week.

November 09, 2018 WebPage Regulatory News
News

FED Finalizes the Large Financial Institution Rating System

FED finalized the new supervisory rating system for Large Financial Institutions (LFIs), to better align with the current supervisory programs and practices for these firms.

November 09, 2018 WebPage Regulatory News
News

EIOPA Publishes Result of the Work of EU-US Insurance Dialog Project

EIOPA published four papers resulting from the work of the EU–U.S. Insurance Dialog Project (EU-U.S. Project) in 2018.

November 08, 2018 WebPage Regulatory News
News

EIOPA Publishes Q&A on Regulations in November 2018

EIOPA published new sets of questions and answers (Q&A) on implementing and delegated regulations applicable to insurers in Europe.

November 07, 2018 WebPage Regulatory News
News

ECB Publishes Version 1.3 of AnaCredit Validation Checks

ECB published Version 1.3 of the AnaCredit validation checks.

November 05, 2018 WebPage Regulatory News
News

OCC Proposes to Revise Regulatory Reporting Requirements for Banks

OCC is consulting on revisions to the regulatory reporting requirements on the company-run annual stress test reporting by national banks and federal savings associations.

October 31, 2018 WebPage Regulatory News
News

FED Consults on Tailoring Regulatory Rules Based on Bank Risk Profiles

FED published two proposals—one by FED and the other one jointly issued with OCC and FDIC—that would create four tiers or categories of banks based on their risk profiles.

October 31, 2018 WebPage Regulatory News
News

EBA Publishes Guidance on Non-Performing and Forborne Exposures in EU

EBA publishes the final guidelines on the management of non-performing and forborne exposures in EU.

October 31, 2018 WebPage Regulatory News
News

HKMA Publishes FAQs on AML/CFT Requirements for Banks

The Hong Kong Association of Banks (HKAB), with input from HKMA, published a set of frequently asked questions (FAQs) in relation to anti-money laundering and counter-financing of terrorism (AML/CFT).

October 31, 2018 WebPage Regulatory News
News

ESMA Updates Bond Liquidity Data Under MiFID II/MiFIR

ESMA issued new data for bonds subject to the pre- and post-trade requirements of the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR) through its data register.

October 31, 2018 WebPage Regulatory News
RESULTS 1 - 10 OF 2178