On 4 October, the European Central Bank (ECB) launched a public consultation on a draft addendum to the ECB guidance on non-performing loans (NPLs). The addendum supplements the guidance which was published on 20 March 2017 and reinforces the guidance with regard to fostering timely provisioning and write-off practices. It specifies minimum levels of prudential provisions for new NPLs. The prudential provisioning expectations will apply to all exposures that are newly classified as non-performing in line with the European Banking Authority definition as of 1 January 2018. These take into account the length of time a loan has been non-performing and the extent and valuation of collateral. More specifically, banks are expected to provide full coverage for the unsecured portion of new NPLs after 2 years at the latest and for the secured portion after 7 years at the latest. Furthermore, banks are expected to explain any deviation from the guidance to supervisors. The consultation period runs from 4 October until 8 December 2017, and includes a public hearing on 30 November 2017.