On 7 November 2024, the European Banking Authority (EBA) published a follow-up report on its 2022 Peer Review report on the supervision of the management of non-performing exposures (NPEs) by credit institutions.

In the follow-up report, the EBA confirms that there have been improvements in competent authorities’ supervisory practices, which it says reflect the significant focus given to the supervision of NPEs by the EBA and competent authorities. The findings also demonstrate that all competent authorities now fully or largely apply the EBA Guidelines on management of non-performing and forborne exposures.

Although the findings of the follow-up review did not necessitate any further recommendations on the topic, the EBA cautions against complacency and encourages competent authorities to remain mindful and vigilant of the need to keep NPE ratios under scrutiny and to address early NPE growth in their jurisdictions.