ECB Guidance on non-performing loans

The European Central Bank (ECB) recently launched a public consultation on guidance to banks on non-performing loans (NPL) but implementing this in the long term will require proper planning and a strategic approach.

This guidance is issued to all systemically important financial institutions (SIFI), including their international subsidiaries, which are supervised directly under the Single Supervisory Mechanism (SSM) and will constitute the ECB supervisory expectation around NPL management. However, it is also very likely that similar practices would be expected from non-significant institutions in the coming years.

Take a deeper look at what’s at stake in our article attached.