Proposal for a Directive on credit servicers, credit purchasers and the recovery of collateral

Author (Corporate)
Series Details COM (2018) 135
Publication Date 14/03/2018
Content Type

Summary:

Legislative initiative put forward by the European Commission in March 2018, which sets up a common framework and minimum requirements for an out-of-court mechanism aimed at recovering the value from loans guaranteed with collateral in case the borrower is not able to pay it back.

Further information:

This initiative is seen as part of the work conducted to strengthen the Economic and Monetary Union (EMU). A Communication from October 2017 sets out a way forward to complete the Banking Union by promoting risk reduction and rish sharing in parallel, as part of the roadmap to strengthen the EMU set out by the European Commission in December 2017. Addressing high stocks of non-performing loans (NPLs) and their possible future accumulation is seen as essential to complete the Banking Union. Similarly, well-developed secondary markets of NPLs are also thought as one of the building blocks for a well-functioning Capital Markets Union (CMU).

In the context, the Council of the European Union adopted in July 2017 an Action Plan to Tackle Non-Performing Loans in Europe. This proposal is part of a series of initiatives put forward by the European Commission to address this effort. It aims to prevent excessive future build-up of NPLs on banks' balance sheets. The initiative is complementary to a number of other measures put forward on the same day alongside a Progress Report on the reduction of NPLs in Europe.

The proposal was adopted by the Commission on 14 March 2018. The Council of the European Union adopted its full negotiating position on this matter on 27 November 2019.

Source Link http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2018:135:FIN
Related Link(s)
Commentary and Analysis
EPRS: Briefing, November 2018: Initial Appraisal of a European Commission Impact Assessment https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2018)627138
EPRS: Briefing, February 2019: Credit servicers, credit purchasers and the recovery of collateral: Fostering secondary markets for non-performing loans (NPLs) and easing collateral recovery https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2019)635514
CEP: Policy Brief No. 4/2019: EU Directive credit servicers, credit purchasers and the recovery of collateral https://www.cep.eu/en/eu-topics/details/cep/credit-servicers-credit-purchasers-and-the-recovery-of-collateral-directive.html
Lexology, 30/08/2019: The proposal for an EU Directive on credit servicers, credit purchasers and the recovery of collateral - a key instrument to seize the non-performing loans or a belated initiative? https://www.lexology.com/library/detail.aspx?g=aaf0c329-2473-49f4-bede-1506acc93cb8

News
Reuters, 27/11/2019: EU states reach deal to ease banks' bad loan recovery https://uk.reuters.com/article/idUKKBN1Y11HW

Official
EUR-Lex: SWD(2018)75 - Impact Assessment http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=SWD:2018:075:FIN
EUR-Lex: SWD(2018)76 - Executive Summay of the Impact Assessment http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=SWD:2018:076:FIN
European Parliament: Legislative Observatory: Procedure File for Proposal on Credit servicers, credit purchasers and the recovery of collateral https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2018/0063A(COD)
EP: Legislative Train: Credit servicers, credit purchasers and the recovery of collateral https://www.europarl.europa.eu/legislative-train/theme-economic-and-monetary-affairs-econ/file-jd-npls-credit-servicers-credit-purchasers-and-the-recovery-of-collateral
ECB: Opinion on a proposal for a directive on credit servicers, credit purchasers and the recovery of collateral, 20 November 2018 https://www.ecb.europa.eu/ecb/legal/date/2018/html/act_15174_amend.en.html
Council of the European Union: Press Release, 27/11/2019: Non-performing loans: Council adopts position on a new mechanism for out-of-court enforcement https://www.consilium.europa.eu/en/press/press-releases/2019/11/27/non-performing-loans-council-adopts-position-on-a-new-mechanism-for-out-of-court-enforcement/

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