By request of the Commission and Council of the EU, the European Banking Authority (EBA) on Thursday 14 December published models of data to provide a basis for transactions in non-performing loans (NPL) across the EU.
The EBA's models, which were developed on the basis of existing reports, provide a set of data common to the EU, whilst taking account of certain national specifics, to allow banks to provide comparable and standardised data on non-performing loans in order to respond to the requirements of investors and other stakeholders.
The loan-by-loan data and information on the counterparties related to the loans and guarantees provided may, in this way, be used for prior examinations, financial checks and assessments during transactions in NPL.
A prolonged use of these models is expected to expand the investor base, reduce barriers to potential investors entering the market, improve the quality and availability of data and facilitate the development of the secondary market in non-performing loans, the authority states in a press release.
These models are not a prudential reporting requirement, the EBA stressed, but have been designed as standards that can be used by banks on a voluntary basis for transactions in NPL. (Original version in French by Marion Fontana)