5.4.5 Other monitoring items

Credit institutions should monitor and report to their management bodies the amount of interest income stemming from NPEs. In addition, a distinction should be made between the interest payments on NPEs actually received and those not actually received. The evolution of loss allowances and the related drivers should also be monitored.

If foreclosure is a part of a credit institution’s NPE strategy, it should also monitor the volume, ageing, coverage and flows of foreclosed assets (or other assets stemming from NPEs) at a sufficient level of granularity to take into account material types of assets. The performance of the foreclosed assets vis-a-vis the predefined business plan should be monitored and reported to the management body and other relevant managers on an aggregate level.