Council adopts reform of capital requirements for banks’ non-performing loans

9 April 2019

On 9 April 2019, the European Council adopted a new framework for dealing with banks’ bad loans.

The new rules set capital requirements applying to banks with non-performing loans (NPLs) on their balance sheets. The aim of the reform is to ensure that banks set aside sufficient own resources when new loans become non-performing and to create appropriate incentives to avoid the accumulation of NPLs.

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