From the GBIC's point of view, there is already a high level of transparency on the secondary markets for non-performing loans (NPLs). The market participants know each other, their standards and particular expertise.
If NPLs are not sold, price expectations are the reasons for
that, not missing transparency. In this respect, greater transparency
would not increase the efficiency of the secondary markets for NPLS. The
introduction of an EU-wide "data hub" for NPLs, which is currently
considered by the European Commission, would therefore create only very
limited added value. At the same time, considerable data protection
problems would be the result. The disclosure requirements associated
with a data hub would also mean a disproportionate bureaucratic effort,
especially for smaller institutions. The GBIC therefore rejects the
introduction of a data hub for NPLs.
Comments
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article