EC Publishes Fourth Progress Report on Reduction of NPLs in EU Banks
EC published the fourth progress report on the reduction of non-performing loans (NPLs) in banks in EU. The report shows that NPL levels are continuing their downward trajectory toward the pre-crisis levels. The ratio of NPLs in EU banks has come down by more than half since 2014, declining to 3.3% in the third quarter of 2018 and down by 1.1 percentage points year-on-year.
Despite clear improvements, high ratios of NPLs do remain a challenge in some member states and deserve continued attention. EC calls on member states and the European Parliament to accelerate work on the outstanding proposals to complement the EU actions to tackle this issue. Important strides have already been made toward full implementation of the EU Action Plan to tackle the high stocks of NPLs. However, EC calls on co-legislators to quickly agree on its proposed measures around the benchmarking of national loan enforcement and insolvency frameworks and to develop a sharper focus on insolvency in the European Semester process. Building on the December 2018 Euro Summit conclusions, this progress report on NPLs will inform discussions on the completion of the Banking Union at the next meeting of EU finance ministers on June 14.
Additionally, EC released a separate communication on the "Deepening of Europe's Economic and Monetary Union," inviting EU leaders to finalize the changes to the Treaty establishing the European Stability Mechanism and to make a renewed effort to advance toward the completion of the Banking Union. Toward the goal of deepening the Economic and Monetary Union, EC has also released factsheets on Banking Union and Capital Markets Union.
Related Links
- Press Release
- Progress Report and Related Documents
- Communication on Deepening Economic and Monetary Union
Keywords: Europe, EU, Banking, NPLs, Action Plan, Banking Union, Capital Markets Union, Economic and Monetary Union, EC
Related Articles
MAS Concludes Blockchain Payments Prototype Shows Commercial Potential
MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.
PRA Publishes Public Working Draft of XBRL Taxonomy 1.2.0 for Insurers
PRA published a public working draft, or PWD, of version 1.2.0 of the BoE Insurance XBRL taxonomy, along with the related technical artefacts.
CPMI Report Sets Out Building Blocks to Enhance Cross-Border Payments
CPMI published a report that sets out nineteen building blocks for a global roadmap to improve cross-border payments.
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.
APRA Updates Reporting Validation Rules in July 2020
APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
PRA to Partly Apply EBA Guidelines on Disclosures for COVID Measures
PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.
EBA Updates List of Correlated Currencies Under CRR
EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.
ESMA Guides on Securitization Repository Data Consistency Thresholds
ESMA published the final report on the guidelines on securitization repository data completeness and consistency thresholds.
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).
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.
