FINANCE - Tackling non-performing loans in Europe

The European Commission is today putting forward an ambitious and comprehensive package of measures to deal with the problem of non-performing loans (NPLs) in Europe. The proposals build on progress made already that has led to a decline in NPLs across banks and EU countries in recent years. Today's measures aim to address both the remaining stocks of NPLs and the potential build-up of new NPLs in the future.

Related topics

Banking union

date: 14/03/2018

The package includes measures to: ensure sufficient loss coverage by banks for future NPLs; enable accelerated out-of-court enforcement of loans secured by collateral; further develop secondary markets for NPLs. It also includes a technical blueprint for how to set up national Asset Management Companies (AMCs). The proposals form an integral part of the EU's work to complete the Banking Union through risk reduction and risk sharing, and will facilitate agreement on a European Deposit Insurance Scheme (EDIS).