On 18 December 2018, the European Commission issued a press release welcoming the political agreement reached by the European Parliament and the Council on prudential measures to further address non-performing loans (NPLs) in Europe. The press release states that the agreed measures will ensure that banks set aside funds to cover the risks associated with loans issued in the future that may become non-performing. This will prevent the accumulation of non-performing exposures on banks’ balance sheets and will ultimately enable banks to perform their role in financing the economy and supporting growth.