While the average ratio of NPLs in the EU has decreased by more than one third since 2014, the total volume of NPLs remains high and some countries are making only slow progress in reducing them. High levels of NPLs can weigh on the economic growth of those countries as they reduce banks’ profitability and their ability to lend, particularly to SMEs.
National authorities and European institutions need to join forces to address the issue. This was recognised by the ECOFIN Council in July 2017, when finance ministers agreed on an Action plan to tackle non-performing loans in Europe. The plan called upon various institutions – including the Commission – to take appropriate measures to address the challenges of high NPL ratios in Europe.
In line with the ECOFIN action plan, the Commission announced in its Communication on completing the banking union of October 2017 a comprehensive package of measures to reduce the level of NPLs in the EU.
A Commission services’ staff working document containing a blueprint on the set-up of national asset management companies (AMCs). The document provides non-binding guidance to national authorities on how they can set up AMCs dealing with NPLs.
Third progress report from the Commission on the progress of the ECOFIN action plan to tackle NPLs in Europe.
The package includes two legislative proposals and a technical blueprint on the set-up of asset management companies.
Second report from the Commission on the progress of the ECOFIN action plan to tackle NPLs in Europe.
First report from the Commission on the progress of the ECOFIN action plan to tackle NPLs in Europe.
The aim of this targeted consultation was to gather feedback from banks, investors and supervisors.
The aim of this consultation was to gather stakeholders' views on possible initiatives to facilitate the development of secondary markets for NPLs.