Featured Product

    EC Proposes A Package of Measures to Tackle NPLs in Europe

    March 14, 2018

    EC proposed a comprehensive package of measures to tackle nonperforming loans (NPLs) in Europe. The proposal for a directive on credit servicers, credit purchasers, and the recovery of collateral is complemented by a proposal for a regulation amending the Capital Requirements Regulation or CRR (EU Regulation No 575/2013). Also published were the second progress report on reduction of NPLs in Europe and a technical blueprint (non-binding guidance) on setting up national asset management companies in line with the EU legal framework and State aid rules.

    The key elements of the proposals include ensuring sufficient loss coverage by banks for future NPLs, enabling accelerated out-of-court enforcement of loans secured by collateral, and further developing the secondary markets for NPLs. The minimum coverage levels for nonperforming exposures (NPEs) will act as a statutory prudential backstop for newly originated loans that become non-performing. EC further proposes to introduce a common definition of NPEs, in accordance with the one already used for supervisory reporting purposes. Valdis Dombrovskis, the EC Vice President for Financial Stability, Financial Services, and Capital Markets Union, said that the "...proposals build on the significant risk reduction already achieved in recent years, and must be an integral part of completing the Banking Union through risk reduction and risk sharing.

    Additionally, the second progress report on reduction of NPLs in Europe shows a continuing decline of NPL stocks. The latest data indicates that the NPL ratio dropped to 4.4% in the third quarter of 2017, bringing it down by roughly 1 percentage point year-on-year and at its lowest level since the fourth quarter of 2014. However, the total volume of NPLs in the EU is still well above the pre-crisis levels (EUR 910 billion). Uneven NPL ratios across the EU—ranging from 0.7% to 46.7%—and slow progress in some member states remain a source of concern.

     

    Related Links

    Keywords: Europe, EU, Banking, NPLs, CRR, Asset Management Companies, Banking Union, EC

    Related Articles
    News

    FSB Sets Out Effective Practices for Cyber Incident Recovery

    FSB finalized the toolkit of effective practices to assist financial institutions in their cyber incident response and recovery activities.

    October 19, 2020 WebPage Regulatory News
    News

    HKMA Urges Early Action for Adherence to IBOR Fallbacks Protocol

    HKMA urged authorized institutions to take early action to adhere to the IBOR Fallbacks Protocol, which ISDA is expected to publish soon.

    October 16, 2020 WebPage Regulatory News
    News

    FSB Sets Out Roadmap for Transition to Alternative Reference Rates

    FSB published a global transition roadmap for London Inter-bank Offered Rate (LIBOR).

    October 16, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Response to Proposal on BRRD2 Transposition

    HM Treasury published a document that summarizes the responses received from a consultation on the approach of UK to transposition of the revised Bank Resolution and Recovery Directive (BRRD2).

    October 15, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Response to Proposal on CRD5 Transposition

    HM Treasury published the government response to the feedback received on the consultation for updating the prudential regime of UK before the end of the Brexit transition period.

    October 15, 2020 WebPage Regulatory News
    News

    BoE Publishes Reporting Schedule for Statistical Returns

    In a recent statistical notice, BoE announced publication of the reporting schedule for statistical returns for 2021.

    October 15, 2020 WebPage Regulatory News
    News

    EC Welcomes Declaration by Member States on EU Cloud Federation

    EC welcomed the joint declaration by 25 EU member states on building the next generation of cloud in Europe.

    October 15, 2020 WebPage Regulatory News
    News

    PRA Updates Supervisory Statement on Counterparty Credit Risk

    PRA published the final policy statement PS22/20, which contains the updated supervisory statement SS12/13 on counterparty credit risk.

    October 14, 2020 WebPage Regulatory News
    News

    FSB Publishes Update on Work to Address Market Fragmentation

    FSB published an update on its work to address market fragmentation. FSB is working in this area in collaboration with the other standard-setting bodies.

    October 14, 2020 WebPage Regulatory News
    News

    EBA Proposes to Revise Guidelines on Incident Reporting Under PSD2

    EBA proposed revisions to the guidelines on major incident reporting under the second Payment Service Directive (PSD2).

    October 14, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5967