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The Guidelines apply to credit institutions that are subject to all or part of the disclosure requirements specified in the Capital Requirements Regulation (CRR). These requirements, including the frequency of the disclosure, are applied in a proportionate manner based on the significance of the credit institution and the level of NPEs.
The Guidelines include ten disclosure templates, of which four are applicable to all credit institutions and six apply only to significant institutions with a high level of NPEs. Overall, this uniform disclosure helps provide meaningful information to market participants on credit institutions' asset quality. In addition, for those institutions with high level of NPEs, the Guidelines help gain a better insight into the features and distribution of their problematic assets, the quality and value of their collaterals and the efficiency of their recovery function.
The content of the uniform templates included in the Guidelines has been developed in parallel with the amendments to the reporting framework on non-performing exposures, which the EBA will consult on. Although the two consultations will be run separately, the EBA will ensure consistency between the disclosure Guidelines and the amended FINREP framework.
Comments to this consultation can be sent to the EBA by 27 July 2018. A public hearing will take place at the EBA premises on 27 June 2018 from 10.30 to 12:30 UK time.