Setting minimum coverage for potential losses stemming from non-performing loans (NPLs)

At a Glance 06-03-2019

In March 2018, the Commission adopted a package of measures to tackle the risks stemming from the high levels of non-performing loans on EU banks' balance sheets. The package includes a proposal to amend the Capital Requirements Regulation, to introduce common minimum coverage levels acting as a 'statutory prudential backstop' for newly originated loans that become non-performing. Parliament is due to vote on the proposal in March.