|Author (Corporate)||European Commission|
|Series Details||COM (2018) 766|
|Content Type||Policy-making, Report|
On 28 November 2018 the European Commission presented a communication taking stock of the latest developments as regards risk reduction in the banking sector and progress towards an even more integrated and stable EU financial system.
Completing the Banking Union remains one of the Union’s key policy objectives, and will further reinforce trust in the banking sector and more widely in the Economic and Monetary Union (EMU). This will boost the EMU’s resilience to adverse shocks by enabling more private risk sharing across borders.
One of the key areas for reducing risk in the European banking sector is the further decline of non-performing loans (NPLs). The financial crisis and subsequent recessions led to more widespread inability of borrowers to pay back their loans, as more people and companies faced continued payment difficulties and even bankruptcy. This was particularly so in Member States that faced long or deep recessions.
In order to reduce the high NPL stocks, the Union agreed on a comprehensive set of measures outlined in the Action Plan to Tackle NPLs in Europe. The Commission presented a dedicated and comprehensive package of measures in March 2018 to further reduce NPLs. The Council also agreed to return to the issue of NPLs on a regular basis and to assess the progress made on the basis of a stocktake by the Commission.
This Communication is the Commission’s third such progress report in response to the Council’s expectation. It is complementary to the Progress report on the Capital Markets Union, adopted on the same day.
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||Banking Union|
|Keywords||Non Performing Loan [NPL]
|International Organisations||European Union [EU]|