On 7 June 2021, the European Parliament (EP) issued a press release stating that EP negotiators and the Council of the EU have agreed on the proposed Directive on credit servicers, credit purchasers and the recovery of collateral. The Directive dates back to 2018, and is intended to help lenders free their balance sheets from non-performing loan stockpiles built up during the financial crisis.
Addressing any possible future accumulation of Non Performing Loans (NPLs) is essential to strengthening the Banking Union and ensuring competition in the banking sector, as well as maintaining financial stability and encouraging banks to lend so as to create jobs, stimulate growth, and support the post-COVID-19 recovery in the EU.
The EP, the Council and the European Commission are now working on the technical aspects of the draft text. Thereafter, the agreement must be approved by the Economic and Monetary Affairs Committee and the EP as a whole.
For more information on this subject read the EP press release here.
Source: europarl.europa.eu