The Executive Committee of ABI, chaired by Antonio Patuelli, on the basis of a report by the General Manager Giovanni Sabatini, has begun the examination of the document "Draft of guidelines on the management of impaired and restructured exposures" put in consultation by the Banking Authority European (EBA) 8 March 2018.
In the method, the Executive Committee first of all highlighted how the document put in consultation by the EBA follows the Guidelines on the management of impaired loans issued in March of 2017 by the ECB-SSM, which were then followed by the decisions of the European Council of July 2017 which defined an action plan on the issue of impaired loans, which was followed by the consultation on the proposal of the ECB-SSM Addendum then made final in March 2018 and the proposal of the European Commission that now will have to follow the European legislative process before to become a Community standard.
The Executive Committee notes a convergence between the Guidelines of the EBA and those of the ECB-SSM, on the other hand noted that the Guidelines (EBA and ECB-SSM) compared to the Addendum and the proposal of the European Commission they move on partially different logics.
The Executive Committee believes that the rapid succession of primary rules, secondary rules, guidelines in a way that is not always coordinated and proportionate does not ensure legal certainty and does not facilitate the adaptation to the rules by the banking sector and does not favor support. to businesses and families.
The EBA Guidelines introduce a timely quantitative threshold for the identification of the category of banks with a high level of NPL. This threshold is set at a value of 5% of the NPL ratio (ratio of total non-performing loans to total loans). In this regard, this value does not appear to be sufficiently justified in particular in light of the persistence of significant differences in terms of recovery time for claims by judicial means between the member states of the European Union.
The response to the EBA consultation will be submitted to the Executive Committee in May, in time to meet the deadline for the June 8.