The European Central Bank (ECB), following the close of the public consultation launched last September, has published the final version of its “Guidance to banks on non-performing loans (NPLs)”.
The adoption of the Guidance was necessary in order to establish a harmonised European framework for action in the management of non-performing loans (NPLs), aimed at “reducing NPLs in a sustainable manner on banks’ balance sheets, with benefits for the economy from both a micro and a macro-prudential perspective”.
The addressees of the document are identified as “credit institutions”, as defined in Article 4(1) of Regulation (EU) No 575/2013 on prudential requirements for credit institutions and investment firms (Capital Requirements Regulation or CRR). As specified in the Guidance itself, however, the provisions it contains are addressed, in general, to all “significant institutions” subject to direct supervision within the Single Supervisory Mechanism (SSM).
The Guidance does not constitute a body of binding rules. Nevertheless, the ECB expects full cooperation and compliance with what is suggested from the banks concerned, recalling that certain commitments may be made binding on an individual basis within the Supervisory Review and Evaluation Process (SREP).
They apply in any event from the date of publication, 20 March 2017.
Text of the Guidance:
Source:
http://www.dirittobancario.it/news/npl/npls-pubblicate-le-linee-guida-della-banca-centrale-europea
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