6. Forbearance

Credit institutions should use the definitions of forbearance measures and FBEs as stated in Annex V to Commission Implementing Regulation (EU) No 680/2014 in their risk management. Forbearance measures should aim to return the borrower to a sustainable performing repayment status, taking into account the amount due and minimising expected losses. When deciding on which steps or forbearance measures to take, credit institutions should take into account the interests of consumers and comply with consumer protection requirements, including those set out in Article 28 of Directive 2014/17/EU³² and in the EBA Guidelines on arrears and foreclosure.³³ Credit institutions should monitor the efficiency and effectiveness of forbearance activities.

³² Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 (OJ L 60, 28.2.2014, p. 34).

³³ Guidelines on arrears and foreclosure (EBA/GL/2015/12).

This section sets out the key elements of governance and operations in relation to FBEs.

6.1 Forbearance measures and their viability

6.2 Sound forbearance processes