The European Banking Authority has launched a consultation on draft Guidelines on loan origination and monitoring. The consultation stems from the European Council's Action Plan on tackling non-performing loans in Europe. The purpose of the guidelines is to improve the processes by which institutions grant loans and monitor them thereafter, with the overarching goal of improving the financial stability of the EU financial system.
National regulators and financial institutions are obliged to make every effort to comply with the guidelines, which include:
Respondents are asked to provide feedback on the guidelines by September 30, 2019. A public hearing will take place at the EBA on September 20, 2019.
View the EBA's Consultation Paper.
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