61. The overarching strategy of a credit institution and its implementation should cover the NPE …

The overarching strategy of a credit institution and its implementation should cover the NPE strategy and operational plan, which should therefore be set, approved and reviewed by the management body. In particular, the management body should:

• a) approve annually and regularly review the NPE strategy and operational plan in line with the overall risk strategy;
• b) oversee the implementation of the NPE strategy;
• c) define quantitative and qualitative management objectives and incentives for NPE workout activities;
• d) monitor on a quarterly basis progress made in comparison with the targets defined in the NPE strategy and operational plan;
• e) define adequate approval processes for NPE workout decisions (for large NPEs, these should involve the approval of the management body);
• f) approve NPE-related policies (including those listed in Annex 4) and processes, review them at least annually and proceed with any necessary amendments, ensuring that the policies and processes are completely understood by the staff;
• g) ensure sufficient internal controls on NPE management processes, with a special focus on activities linked to NPE classifications, impairments, write-offs, collateral valuations and the sustainability of forbearance solutions;
• h) have sufficient knowledge, experience and expertise with regard to the management of NPEs.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA -

  EN: Guidelines and other publications of the European Banking Authority (EBA), https://www.eba.europa.eu/. © European Banking Authority. Reproduction is authorised provided the source is acknowledged (EBA legal notice). Divided into sections and converted into the GRCA format, the wording unchanged. Only the versions published by the EBA are authoritative.

  DE: Leitlinien und weitere Veröffentlichungen der Europäischen Bankenaufsichtsbehörde (EBA), https://www.eba.europa.eu/. © European Banking Authority. Wiedergabe mit Quellenangabe gestattet (Rechtlicher Hinweis der EBA). In Abschnitte aufgeteilt und in das GRCA-Format umgewandelt, der Wortlaut unverändert. Maßgeblich sind allein die von der EBA veröffentlichten Fassungen.