EBA欧洲银行-Final-GL-on-disclosure-of-non-performing-and-forborne-exposures-EN_38页_1mb

EBA/GL/2018/10 Guidelines on Disclosure of Non-performing and Forborne Exposures

Core Content

These guidelines, issued under Article 16 of Regulation (EU) No 1093/2010, set out supervisory practices for the disclosure of non-performing exposures (NPEs) and forborne exposures (FBEs) in the European banking sector. They aim to ensure transparency and consistency in reporting these exposures across credit institutions and competent authorities.

Main Points

Compliance and Reporting Obligations

• Competent authorities and financial institutions must comply with these guidelines or notify the EBA of non-compliance by a specified deadline.
• Failure to notify by the deadline will be considered non-compliance.
• Notifications should be submitted via the EBA's online form with the reference 'EBA/GL/2018/10' to compliance@eba.europa.eu.
• Any change in compliance status must be reported to the EBA.

Scope and Definitions

• The guidelines apply to credit institutions under Part Eight of Regulation (EU) No 575/2013 (CRR), specifically those with disclosure requirements related to NPEs and FBEs.

• The scope includes all exposures meeting the definitions of 'non-performing' and 'forbearance' in Annex V to Regulation (EU) No 680/2014.

• Significant credit institutions are defined by the following criteria:

  • Being one of the three largest in the home Member State.
  • Consolidated assets exceeding EUR 30 billion.
  • A 4-year average of total assets exceeding 20% of the 4-year average GDP of the home Member State.
  • Consolidated exposures exceeding EUR 200 billion or equivalent in foreign currency.
  • Identified as a global or other systemically important institution (G-SII or O-SII).

• Gross NPL ratio is defined as the ratio of the gross carrying amount of non-performing loans and advances to the total gross carrying amount of loans and advances subject to the NPE definition, excluding held-for-sale loans, cash balances at central banks, and other demand deposits.

Frequency of Disclosures

• Templates 1, 3, 4, and 9 are to be disclosed:
  • Semi-annually by significant credit institutions with a gross NPL ratio of 5% or above.
  • Annually by all other credit institutions.
• Templates 2, 5, 6, 7, 8, and 10 are to be disclosed annually by significant credit institutions with a gross NPL ratio of 5% or above.
• Institutions may start disclosing these templates if they have been at or above the 5% threshold in two consecutive quarters prior to the disclosure date.
• Institutions may stop disclosing if they fall below the 5% threshold in three consecutive quarters.

Key Templates and Their Details

Template 1: Credit Quality of Forborne Exposures

• Purpose: Provide an overview of the quality of forborne exposures.
• Scope: Applies to all credit institutions.
• Content:
  • Gross carrying amount of forborne exposures.
  • Accumulated impairment, provisions, and fair value changes.
  • Collateral and financial guarantees received.
• Format: Fixed.
• Narrative: Institutions must explain significant changes from the previous disclosure period.

Template 2: Quality of Forbearance

• Purpose: Overview of the quality of forbearance.
• Scope: Applies to significant credit institutions with a gross NPL ratio of 5% or above.
• Content:
  • Gross carrying amount of forborne exposures.
  • Breakdown of exposures that have been forbore more than twice and those that failed to meet non-performing exit criteria.
• Format: Fixed.
• Narrative: Institutions must explain significant changes from the previous disclosure period.

Template 3: Credit Quality of Performing and Non-performing Exposures by Past Due Days

• Purpose: Overview of credit quality by past due days.
• Scope: Applies to all credit institutions.
• Content:
  • Gross carrying amount of performing and non-performing exposures.
  • Breakdown by past due days (≤30, >30–90, >90–180, etc.).
  • Includes the gross NPL ratio.
• Format: Fixed.
• Narrative: Institutions must explain significant changes and disclose the gross NPL ratio.

Template 4: Performing and Non-performing Exposures and Related Provisions

• Purpose: Overview of credit quality and related impairments, provisions, and valuation adjustments.
• Scope: Applies to all credit institutions.
• Content:
  • Gross carrying amount of performing and non-performing exposures.
  • Accumulated impairment, provisions, and partial write-offs.
  • Collateral and financial guarantees received.
• Format: Fixed.
• Narrative: Institutions must explain significant changes.

Template 5: Quality of Non-performing Exposures by Geography

• Purpose: Provide geographical breakdown of non-performing exposures.
• Scope: Applies to significant credit institutions with a gross NPL ratio of 5% or above.
• Content:
  • Gross carrying amount of non-performing exposures by geography.
• Format: Fixed.
• Narrative: Institutions must explain significant changes.

Template 6: Quality of Loans and Advances by Industry

• Purpose: Provide industry breakdown of loans and advances.
• Scope: Applies to significant credit institutions with a gross NPL ratio of 5% or above.
• Content:
  • Gross carrying amount of loans and advances by industry.
• Format: Fixed.
• Narrative: Institutions must explain significant changes.

Template 7: Collateral Valuation – Loans and Advances

• Purpose: Provide information on the valuation of collateral for loans and advances.
• Scope: Applies to significant credit institutions with a gross NPL ratio of 5% or above.
• Content:
  • Collateral valuation details for non-performing exposures.
• Format: Fixed.
• Narrative: Institutions must explain significant changes.

Template 8: Changes in the Stock of Non-performing Loans and Advances

• Purpose: Provide information on changes in the stock of non-performing loans and advances.
• Scope: Applies to significant credit institutions with a gross NPL ratio of 5% or above.
• Content:
  • Changes in the stock of non-performing loans and advances.
• Format: Fixed.
• Narrative: Institutions must explain significant changes.

Template 9: Collateral Obtained by Taking Possession and Execution Processes

• Purpose: Provide information on collateral obtained through legal processes.
• Scope: Applies to all credit institutions.
• Content:
  • Gross carrying amount and related information on collateral obtained.
• Format: Fixed.
• Narrative: Institutions must explain significant changes.

Template 10: Collateral Obtained by Taking Possession and Execution Processes – Vintage Breakdown

• Purpose: Provide vintage breakdown of collateral obtained through legal processes.
• Scope: Applies to significant credit institutions with a gross NPL ratio of 5% or above.
• Content:
  • Vintage breakdown of collateral obtained.
• Format: Fixed.
• Narrative: Institutions must explain significant changes.

Implementation

• Date of Application: These guidelines apply from 31 December 2019.
• Amendments: They replace the following templates from the EBA/GL/2016/11 guidelines:
  • 'Template 14: EU CR1-D – Ageing of past-due exposures'
  • 'Template 15: EU CR1-E – Non-performing and forborne exposures'
• Institutions previously required to disclose 'Template 12' and 'Template 13' may use 'Template 5' and 'Template 6' for NPEs, or choose to report only NPE-related information while completing the old templates for defaulted exposures.