May 2017

Banks will need to define a roadmap of actions, with the development of a Credit Information Framework as its first pillar,  aimed at developing the industrial management of non-performing loans (NPLs).

The ECB guidelines on NPLs, with the final version published on January 30, 2017, define the methods of managing NPLs, touching on all the strategic, management, process and governance aspects, as well as classification and assessment. These guidelines are directly applicable to “significant institutions”, and are non-binding recommendations for less significant banks (even though any deviations should be explained and justified).