On October 31, the European Banking Authority (“EBA“) published its final report on guidelines on the management of non-performing and forborne exposures (EBA/GL/2018/06).

The guidelines seek to reduce non-performing exposures (“NPEs“) on banks’ balance sheets. The EBA expects credit institutions with a gross non-performing loan (“NPL“) ratio at 5% or above to establish NPE strategies and to introduce governance and operational requirements to support those strategies. The NPE strategy should set out the credit institution’s approach and objectives regarding effective management to maximize recoveries and ultimately a reduction in NPE stocks in a clear, credible and feasible manner for each relevant portfolio. READ MORE →