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The Guidelines set enhanced disclosure requirements and uniform disclosure formats applicable to credit institutions' public disclosure of information regarding non-performing exposures, forborne exposures and foreclosed assets.
The proportionality principle applies to these Guidelines and is based on the significance of the credit institution and the level of non-performing loans. Therefore, the Guidelines include a set of common templates applicable to all banks and a set of additional templates applicable only to significant credit institutions with a gross NPL ratio at a level of 5% or above.
The aim of the Guidelines is to foster transparency, providing meaningful information to market participants on the quality of credit institutions' assets, and to address any potential asymmetries of information in a consistent and comparable way.
In addition, for those credit institutions with a gross NPL ratio at or above 5%, the Guidelines aim at providing a better insight of the distribution and features of the institutions' problematic assets, the quality and value of the collaterals backing them and the efficiency of the institution's recovery function.