On 16 May 2022, the European Banking Authority (EBA) issued a consultation regarding draft implementing technical standards (ITS) specifying the templates to be used by credit institutions for the provision of information to credit purchasers when selling or transferring non-performing loans (NPLs) for the purposes of financial due diligence and valuation of NPLs.
The data templates shall provide detailed information on credit institutions’ credit exposures in the banking book for the credit purchasers’ analysis, financial due diligence, and valuation of a creditor’s rights under a non-performing credit agreement, or of the non-performing credit agreement itself. The objective is to provide a common standard for the NPL sale transactions across the EU enabling cross-country comparison and thus reducing information asymmetries between the seller and buyers of NPL, which was identified as one of the key impediments for the development of efficient functioning NPL secondary markets in the EU.
The deadline for comments on the consultation is 31 August 2022. An online public hearing will take place on 15 June 2022.
The draft ITS will be finalised following the completion of the public consultation and delivered to the European Commission by the end of 2022.