{"id":36467,"date":"2023-10-18T00:00:00","date_gmt":"2023-10-17T22:00:00","guid":{"rendered":"https:\/\/lexia.studioup.site\/the-credit-servicing-directive-promoting-the-eu-market-for-npls\/"},"modified":"2025-01-07T18:16:29","modified_gmt":"2025-01-07T16:16:29","slug":"credit-servicing-directive","status":"publish","type":"post","link":"https:\/\/www.lexia.it\/de\/2023\/10\/18\/credit-servicing-directive\/","title":{"rendered":"The Credit Servicing Directive: Promoting the EU Market for NPLs"},"content":{"rendered":"

\u2013 Written by\u00a0Angelo Messore<\/a> and Anna Travanini<\/a><\/p>\n

Directive (EU) 2022\/2167 (the \u201cCredit Servicing Directive<\/strong>\u201d) introduced a common framework for the management and disposal of non-performing loans (\u201cNPLs<\/strong>\u201d). The Directive provides for new authorisation obligations for credit servicers and imposes information sharing and reporting obligations to credit institutions and credit purchasers executing NPL transactions. The purpose of the EU rules is to facilitate the transfer of NPLs in the EU, at the same time ensuring that credit servicing activities are conducted in accordance with harmonised standards and principles. The deadline for the transposition of the Directive is approaching, as Member States will have to implement the new rules by 29 December 2023. <\/em><\/p>\n

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The EU reforms on NPLs<\/h2>\n

The Credit Servicing Directive was originally proposed in March 2018 as part of the EU Action Plan to reduce NPLs in Europe. The Action Plan comprised a package of measures aimed at reducing the stock of NPLs of European banks and included the new EU rules and ECB guidelines imposing the application of a statutory prudential backstop for the provisioning of NPLs.<\/p>\n

The purpose of the proposed legislation on credit servicing and credit purchaser was to facilitate the disposal of NPLs by EU credit institutions by encouraging the development and integration of secondary markets for this type of assets. The proposal was aimed at counterbalancing the effects deriving from the introduction of the EU rules on calendar provisioning by making it easier for credit institutions to transfer their NPLs\u2019 portfolios.<\/p>\n

After years of discussions and negotiations \u2013 which led to a reduction of the scope of the original proposal \u2013 the final text of the Credit Servicing Directive was approved in 2022, and will now have to be implemented by the end of 2023.<\/p>\n

Who will be affected by the Credit Servicing Directive?<\/h2>\n

The Directive applies to the following entities:<\/p>\n