The regulation on a new framework setting out capital requirements applying to banks with NPLs was published in the Official Journal of the EU and entered into force a day later, on 26 April 2019. Based on a common definition of NPLs, the proposed new rules introduce a "prudential backstop", i.e., a minimum amount of money banks need to set aside to cover losses caused by future loans that turn non-performing, which will depend on the classifications of the NPLs as "unsecured" or "secured" and whether the collateral is movable or immovable. The new rules should not be applied in relation to exposures originated prior to 26 April 2019.

Request a demo Toggle

Request a demo

We use reCaptcha to secure our forms. This requires JavaScript enabled.

Complete all fields marked with an asterisk