EBA published new documents regarding Non Performing Loans (NPL)
Document for the changes to the current EBA templates for reporting NPL credits
The document proposes changes to the current templates for optimizing information and involving a greater number of banking experts. The possibility of distinguishing NPLs into different categories is proposed, for example, with regard to leasing, car loans to individuals and loans for non-residential property.
Document for the treatment of the appropriate reporting of acquired NPLs
The document, on the other hand, examines the most adequate treatment of NPLs. Concerning this topic, we intend to turn to the acknowledgement for banks that purchase non-performing loans with the discount applied on the value of the exposure being negotiated. With regard to the same recognition for financial intermediaries, the discount on sales will have to be handled in a similar manner to specific value adjustments.
EBA highlights the imporntance of targeted consultation on improving transparency and efficiency in secondary markets for Non Performing Loans published by the European Commission.
This document presents two proposals:
- an NPL data hub at European level
- tailoring Pillar 3 disclosure requirements and extension of the scope of disclosures
The deadline for submission of own considerations is 8th September 2021.
Read or download here:
EBA discussion paper on the review of NPL transaction data templates
Consultation paper – Revised on credit risk adjustments
Consultation document – European Commission
Look at Bad-Credit Management: SEFIN solution for NPL management