How does this fit in with the EU's and Eurozone's other NPL workstreams and what does this mean for firms?
On 10 November 2017 the European Commission (the EC) published a consultation document on "Statutory Prudential Backstops Addressing Insufficient Provisioning for Newly Originated Loans That Turn Non-Performing" (the EC's NPL Provisioning Consultation). This consultation follows on from a raft of action by the European Central Bank (ECB), acting in is role in the Single Supervisory Mechanism in the Eurozone and its Banking Union as well as the EU’s NPL Action Plan that aims to replicate rules and tools of the ECB-SSM in a tailored approach applicable across the EU-27. This current EC consultation closes for comment on 30 November. It is likely to have some quite far reaching impact for a breadth of firms. This Client Alert assesses the content, how it fits into the wider context and also that firms may need to start thinking now about responding, but equally that a tool is being rolled-out that will carry with it compliance costs.