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. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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