EBA advises European Commission on the use of prudential backstops to prevent the building up of new NPLs
(WorldNews Politics)

14 March 2018 The European Banking Authority (EBA) published today its advice on the Commission`s proposal for statutory prudential backstops on banks` provisioning practices for new loans that turn non-performing. The EBA notes that the backstop complements the existing prudential set of measures and the new accounting provisions under IFRS9 and the advice aims at providing some qualitative considerations as well as a conservative impact analysis of the proposed measures. The EBA conducted this analysis in response to the European Commission`s request for advice to look into the expected impact the introduction of such statutory...