+4. NPE strategy
---+22. This section sets out the key elements for developing and implementing an NPE strategy. Credit …
---+23. In the development and implementation of their NPE strategies, credit institutions should take …
---+4.1 Developing the NPE strategy
------+24. Credit institutions should establish an NPE strategy to target a time-bound reduction of NPEs …
------+25. The following steps should form the core building blocks of the development and implementation …
------+26. When credit institutions develop their NPE strategy, they should also consider policies that …
---+4.2 Assessing the operating environment
------+27. As a first phase in the formulation and execution of an appropriate NPE strategy, credit …
------+4.2.1 Internal capabilities/self-assessment
---------+28. Credit institutions should perform a comprehensive self-assessment to evaluate the actual …
---------+29. Institutions should fully understand and assess: a) The magnitude and drivers of their NPEs: i. …
---------+30. C redit institutions should perform a comprehensive self-assessment covering at least the items …
---------+31. Credit institutions should report the outcome of the comprehensive self-assessment to the …
---------+32. Credit institutions should consider seeking expert views on their operational capabilities to …
------+4.2.2 External conditions and operating environment
---------+33. Credit institutions should assess and consider the current and likely future external operating …
------+4.2.3 Capital implications of the NPE strategy
---------+34. Credit institutions should be able to calculate a detailed assessment of the impact of the …
---------+35. Credit institutions should include suitable actions in their capital planning to ensure that …
---+4.3 Development of the NPE strategy
------+36. The NPE strategy should encompass, at a minimum, time-bound quantitative NPE targets and …
------+4.3.1 Strategy implementation options
---------+37. Credit institutions should consider including a combination of strategies and options in the …
---------+38. Credit institutions should identify medium- and long-term strategy options for NPE reductions …
---------+39. When a credit institution concludes that none of the above options will lead to a sufficient …
---------+40. Credit institutions aiming to engage in complex processes, such as NPE risk transfer and …
------+4.3.2 Targets
---------+41. Before commencing the short- to medium-term target-setting process, credit institutions should …
---------+42. Credit institutions should include, at a minimum, clearly defined realistic yet ambitious …
---------+43. Credit institutions should establish targets as followings: a) by time horizons (short-term …
---------+44. The NPE targets for credit institutions should at a minimum include a projected absolute or …
---------+45. The NPE targets should be aligned with the more granular operational targets. Further …
------+4.3.3 Operational plan
---------+46. The NPE strategy of the credit institution should be supported by an operational plan, which …
---------+47. The NPE operational plan should contain at least: a) clear time-bound objectives and goals; b) …
---------+48. The operational plan should have a specific focus on internal factors that could present …
---+4.4 Implementing the operational plan
------+49. The implementation of the NPE strategy operational plan should rely on suitable policies and …
------+50. Credit institutions should report material deviations from the plan to the management body and …
---+4.5 Embedding the NPE strategy
------+51. As the execution and delivery of the NPE strategy will involve and depend on many different …
------+52. Credit institutions should emphasise to all relevant staff the key components of the NPE …
------+53. Credit institutions should clearly define and document the roles, responsibilities and formal …
------+54. Staff and management involved in NPE workout activities should be provided with clear …
------+55. All relevant components of the NPE strategy should be fully aligned with and integrated into …
------+56. The NPE strategy should be fully embedded in the risk management framework. In that context …
------+57. Credit institutions should ensure a high level of monitoring and oversight by the risk …

4. NPE strategy

4. NPE strategy

1. Overview

,
22. This section sets out the key elements for developing and implementing an NPE strategy. Credit …

This section sets out the key elements for developing and implementing an NPE strategy. Credit institutions should have in place an adequate framework to identify, measure, manage, monitor and mitigate NPEs, including through workout activities.
23. In the development and implementation of their NPE strategies, credit institutions should take …

In the development and implementation of their NPE strategies, credit institutions should take into account relevant consumer protection considerations and requirements, and ensure fair treatment of consumers.
4.1 Developing the NPE strategy

4.1 Developing the NPE strategy
4.2 Assessing the operating environment

4.2 Assessing the operating environment
4.3 Development of the NPE strategy

4.3 Development of the NPE strategy
4.4 Implementing the operational plan

4.4 Implementing the operational plan
4.5 Embedding the NPE strategy

4.5 Embedding the NPE strategy

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements

3. Related Standards

Standards
  • EBA - Published by the European Banking Authority at https://www.eba.europa.eu/