EBA Guidelines on management of non-performing and forborne exposures
EBA recently published its final Guidelines on management of non-performing and forborne exposures which aim to ensure that credit institutions have adequate prudential tools and frameworks in place to manage effectively their non-performing exposures (NPEs) and to achieve a sustainable reduction on their balance sheets. It also requires institutions to establish NPE reduction strategies and introduce governance and operational requirements to support them.
The deadline for competent authorities to report whether they comply with the guidelines will be two months after the publication of the translations. The guidelines will apply from 30 June 2019.