The ECB has conducted in-depth assessments of banks’ forbearance processes as part of its supervisory priorities.
Forbearance involves providing concessions to borrowers who may struggle to repay their loans, aiming to return them to a sustainable repayment path. The analyses revealed areas for improvement, including the proper identification of clients in financial difficulties, granting appropriate and sustainable measures, and establishing robust monitoring processes for forborne exposures. Effective forbearance frameworks and efficient processes are crucial, particularly in the current economic environment, to prepare for potential increases in distressed debt and refinancing risk. These measures not only support viable distressed debtors but also mitigate losses for banks and the economy.
The European Commission welcomes the political agreement reached on the “banking package” which implements Basel III standards, making EU banks more resilient and addressing sustainability
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At the start of March, the Bank for International Settlements (BIS) in conjunction with several central banks concluded Project Icebreaker in which the potential benefits and challenges of
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The new threshold is set at a 5% decline of Tier 1 capital, replacing the previous level of 2.5%. The EBA plans to review and update the threshold regularly and may revise the methodology in
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In a continued effort to ensure we offer our customers the very best in knowledge and skills, Zanders has acquired Fintegral.