MOTION FOR A RESOLUTION on banking rules on non-performing loans: impacts of the pandemic and proposed temporary solutions

B9‑0212/2021

Motion for a European Parliament resolution on banking rules on non-performing loans: impacts of the pandemic and proposed temporary solutions

The European Parliament,

– having regard to the opinion of the European Economic and Social Committee (EESC) of 29 October 2020 entitled ‘Amendments to financial regulation to facilitate economic recovery post COVID-19’[1],

– having regard to Regulation (EU) 2019/630 of the European Parliament and of the Council of 17 April 2019 amending Regulation (EU) No 575/2013 as regards minimum loss coverage for non-performing exposures[2],

– having regard to Rule 143 of its Rules of Procedure,

A. whereas in its opinion of 29 October 2020, the EESC considered that the Commission should come up with further proposals to address the most pressing issues with regard to non-performing loans (NPLs);

B. whereas the structure of the current regulatory framework for NPLs was established under different circumstances than today, without taking into account the possibility of a crisis such as the current one;

C. whereas the current regulatory framework requires a pre-determined level for the NPL backstop within a strict timeframe that, in some cases, does not take due account of collateral;

1. Calls for a temporary modification of the NPL backstop to allow the provisioning curves to move forward for at least 24 months for both secured and unsecured NPLs.