Capital Markets Union and Banking Union: Member States agree to negotiate new measures against build-up of non-performing loans
Member States agreed yesterday to start inter-institutional negotiations on new rules aimed at increasing the efficiency of collateral enforcement in the banking union. Such measures purport to prevent the future build-up of non-performing loans (NPLs), while maintaining a high level of borrower protection.
Commissioner Valdis Dombrovskis, the Vice-President responsible for Financial Stability, Financial Services and Capital Markets Union, welcomed the agreement and described it as a ‘significant step towards increasing the resilience of the European banking sector’. The rules will now be discussed by the European Parliament.
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