The members of the EACB welcome the opportunity to comment on the Committee guidance on the prudential treatment of problem assets – definitions of non-performing exposures and forbearance.
In the current regulatory context the terms “non-performing exposures” (NPEs) and “forbearance” are defined differently in various jurisdictions, however regulators are trying to harmonise such definitions, in particular the EBA is conducting in depth work. We believe that these workstreams should be as aligned as possible to avoid uncertainty for institutions and inconsistencies that would make implementation extremely difficult.
For the entire paper, click on DOWNLOAD PDF