EBA invites feedback on NPL data templates
The European Banking Authority (EBA) has published a discussion paper inviting input on its standardised non-performing loan (NPL) data templates. These provide a common basis for data exchange in secondary markets, forming part of the overall strategy to tackle NPLs in the EU. Comments are due by 31 August 2021.
The review seeks to streamline the NPL templates to help banks better prepare their NPL management strategies in the aftermath of the COVID-19 pandemic, whilst addressing information asymmetries to promote price discovery between buyers and sellers. Aspects under consideration include the templates’ design and data fields to be included, as well as their criticality and availability. The objective is to make the templates simpler, more proportionate and more effective, and make them available to all market participants by the end of 2021 to enable consistent price discovery across the EU. The EBA notes, however, that the adoption of the proposed Directive on credit servicers, purchasers and recovery of collateral could mandate the EBA to turn these data templates into implementing technical standards (ITS), for which the EBA would have to publish a consultation paper. Has anyone been experimenting in this field with the new XBRL OIM standards?
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