EBA欧洲银行-EBA-ITS-2013-03-Final-draft-ITS-on-Forbearance-and-Non-performing-exposures_65页_875kb

EBA FINAL Draft Implementing Technical Standards on Supervisory Reporting of Forbearance and Non-Performing Exposures

Executive Summary

The European Banking Authority (EBA) has developed final draft definitions of forbearance and non-performing exposures under Article 99(4) of Regulation (EU) No 575/2013 (CRR). These definitions, along with supervisory reporting templates, will be integrated into the FINREP framework once adopted by the European Commission, and are expected to enter into force in September 2014, with a deferred reporting date of 31 December 2014.

The EBA aims to provide supervisors with a consistent and comparable basis to assess asset quality across the European Union. These definitions are not intended to replace existing concepts of impairment and default, but rather to supplement them with harmonised criteria for supervisory purposes.

Key Points:

• Forbearance refers to concessions made to debtors in financial difficulties, such as modifying terms and conditions or refinancing.
• Non-performing exposures are defined as exposures more than 90 days past due or unlikely to be repaid fully without collateral.
• The definitions apply to on-balance-sheet loans and debt securities, excluding held for trading exposures.
• Off-balance-sheet items like loan commitments, financial guarantees, and other commitments are included in non-performing exposures.
• Harmonisation of asset quality indicators is intended to improve comparability and support macro-prudential oversight.

Core Content and Main Objectives

Objectives:

• Enhance supervisory reporting on forbearance and non-performing exposures to ensure consistency across EU institutions.
• Facilitate early risk identification and stability of the European financial system.
• Support coordinated actions at the EU and international level on asset quality issues.

Key Definitions:

• Forbearance: Debt contracts where concessions have been made to a debtor in financial difficulties.
• Non-performing exposures: Exposures that are more than 90 days past due or unlikely to be repaid fully without collateral.
• Forbearance measures are not intended to delay loss recognition or mask asset quality deterioration, but to allow supervisory assessment of the impact of such measures.

Key Information and Implementation Details

Reporting Templates:

• Separate templates for forbearance and non-performing exposures.
• Templates are to be completed on a consolidated basis.
• Aggregate data is also to be provided on a country-by-country level.

Harmonisation Elements:

• The EBA has removed redundant data to reduce implementation costs.
• The umbrella approach ensures that forbearance and non-performing exposures include existing credit risk-related concepts, without superseding them.
• Non-performing exposures include defaulted and impaired exposures, and other exposures that meet the EBA’s entry criteria.

Exit Criteria for Non-Performing Exposures:

• Exposures may cease to be non-performing if:
  • The exit criteria for impairment and default are met.
  • The debtor’s situation has improved to the point where full repayment is likely.
  • The debtor does not have any past-due amounts exceeding 90 days.

Exit Criteria for Forbearance:

• Forbearance may cease to apply if:
  • The extension does not lead to impairment or default.
  • One year has passed since the extension.
  • There are no past-due amounts or concerns about repayment under post-forbearance conditions.

Reporting Requirements:

• Past-due exposures must be reported separately in performing and non-performing categories.
• Non-performing exposures are to be broken down by time bands.
• Collateral and financial guarantees on non-performing exposures must be reported separately and capped at the carrying amount of the exposure.

Main Viewpoints and Rationale

• The EBA aims to address inconsistencies in national practices and supervisory assessments.
• Uncertainty in asset quality across the EU has led to differing interpretations of forbearance and non-performing exposures.
• The umbrella approach ensures comprehensive coverage while maintaining compatibility with existing accounting and regulatory standards.
• The harmonisation of definitions is expected to outweigh short-term implementation costs in the medium term.
• The templates are additional to the FINREP framework, ensuring consistency with existing reporting requirements.

Conclusion

These draft implementing technical standards provide a common framework for supervisory reporting of forbearance and non-performing exposures, enhancing transparency, comparability, and risk assessment across the European banking sector. They are designed to support macro-prudential oversight and financial stability in the EU.