Updated: October 2019
ESBG believes that the new measures should not force banks to get rid of their NPLs. In particular, we advocate
ESBG believes that the new Accelerated Extrajudicial Collateral Enforcement (AECE) mechanism should not
negatively impact the functioning of national systems for collateral enforcement.
The introduction of measures to develop
secondary markets for NPLs might have the
unintended effect to push banks too hard to get
rid of their NPLs stock. These deteriorated loans
might end up being sold for a price lower than
their real economic value (the so called “fire-sale”),
but also this would deprive banks of the
opportunity to make these loans performing
New MEPs and the Commission should continue
their good work in making the financial sector
more stable and safe, but they should also keep
in mind economic growth and easing the
conditions for lending to the real economy when
designing new prudential requirements.
In March 2018, the Commission proposed an ambitious and comprehensive package of measures to tackle
Non-Performing Loans (NPLs) in Europe, which included:
The Regulation on the statutory prudential backstop has been published in the Official Journal of the EU on
25 April 2019. On the other hand, the Directive on secondary markets is going to be dealt with by the new
European Parliament since an agreement in ECON couldn’t be reached.