+Annex 2 – Benchmarks for NPE monitoring metrics
---+Benchmarks for NPE monitoring metrics
---+NPE metrics
---+Collection activities
---+Benchmarks for NPE monitoring metrics
---+Forbearance activities
---+Benchmarks for NPE monitoring metrics
---+Profits and loss (P&L) items stemming from NPEs

Annex 2 – Benchmarks for NPE monitoring metrics

1. Overview

Benchmarks for NPE monitoring metrics

NPE metrics

NPE level and flows	NPE stock ∕ total volume of exposures NPE stock + foreclosed assets + performing forborne/total volume of exposures + foreclosed assets Quarterly flow of NPEs (+/-) ∕ total NPE stock Quarterly flow from performing exposure (PE) to NPE Quarterly flow from performing FBE to NPE Quarterly flow from NPE to PE Quarterly flow from NPE to performing FBE Quarterly flow from performing FBE to PE Quarterly flow from PE to performing FBE
Impairments	Quarterly increase in stock of loss allowances Quarterly level of reversal of impairments Quarterly change in stock of loss allowances(+/-) ∕ total NPE stock Accumulated total provisions/total NPE stock By cohort (e.g. number of years since NPE classification, secured/unsecured)
Loss budget	Total loss as a result of forbearance activity Total loss versus budget

Collection activities

Staff activity

Number of borrower engagements per quarter versus plan Number of borrower engagements leading to forbearance agreement Number of borrower engagements leading to cash recovery Quarterly cash recovery from NPEs ∕ total NPE stock Quarterly cash recovery from interest on NPEs ∕ total NPE stock

Benchmarks for NPE monitoring metrics

Cash recovery

Quarterly cash recovery from capital and fees on NPEs ∕ total NPE stock Quarterly cash recovery from property-related liquidations, also as a percentage of total NPE stock Quarterly cash recovery from non-property-related liquidations, also as a percentage of total NPE stock Quarterly cash recovery from sales of NPEs, also as a percentage of total NPE stock Quarterly cash recovery from NPEs, also as a percentage of total NPE stock

Forbearance activities

Debt forgiveness	Quarterly debt forgiveness Quarterly debt forgiveness ∕ specific assigned provisions Quarterly debt forgiveness ∕ total NPE stock Quarterly accounting write-offs (full and partial) Quarterly accounting write-offs (full and partial) ∕ individually assessed stock of loss allowances
Accounting write-offs	Quarterly accounting write-offs (full and partial) ∕ total NPE stock Value of NPEs currently in forbearance Value of recently agreed forbearance solutions by characteristics (e.g. payment holiday > 12 months) Value of loans currently in forbearance ∕ total NPE stock
Forbearance activity	Value of PEs currently in forbearance Quarterly non-performing FBEs ∕ total NPE stock Total non-performing FBEs ∕ total NPE stock Value of non-performing FBEs currently experiencing financial difficulties Cure rate Cash collection rate Re-default rate on non-performing FBEs
Re-default rate	Re-default rate on performing FBEs Quarterly debt to equity swaps, also as a percentage of total NPE stock
Debt/asset swap	Quarterly debt to asset swaps, also as a percentage of total NPE stock

Benchmarks for NPE monitoring metrics

Legal activities

Value and number of loans currently in legal activity Value and number of assets recently foreclosed Quarterly value and number of loans newly entering legal activity Quarterly value and number of loans exiting legal activity Average duration of legal procedures recently closed Average amounts recovered from legal procedures recently closed (including total costs) Loss rate on loans exiting legal activity

Profits and loss (P&L) items stemming from NPEs

Interest from NPEs

Interest payments recognised on NPEs in the P&L Percentage of recognised interest payments from NPEs actually received

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements
Source	Requirement

3. Related Standards

Standards
Source	Requirement

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