EDW to Implement new NPL Templates in Dedicated Private Area Reporting Solution
FRANKFURT, GERMANY—19 December 2022
In response to the European Banking Authority’s (EBA’s) release of its new Non-Performing Loan (NPL) data templates, European DataWarehouse (EDW) is pleased to announce its plans to implement the new templates in a dedicated private area.
EDW worked closely with EBA, and all stakeholders, to support the alignment of the NPL templates with the corresponding ESMA templates as well as the ECB, GACS, and Bank of Italy reporting obligations for Non-Performing Exposures as well as Unlikely-to Pay bank loans.
“Following a thorough consultation period, in which EDW was also heavily involved in collecting industry feedback on the criticality and availability of specific data fields, we are pleased that the revision of the NPL data templates will finally provide the market with the standardised information required to reduce information asymmetries between sellers and buyers of NPLs,” says EDW CEO and member of the European Commission NPL Advisory Panel, Dr. Christian Thun.
By implementing the NPL templates in its private area solution, sellers reporting to EDW will benefit from streamlined data submissions and EDW’s unparalleled experience in data management. The resulting superior data quality will enable investors to invest with confidence.
“EDW strongly believes that the future of the secondary markets for distressed assets is pinned on leveraging data to build investor confidence and we look forward to supporting the industry in complying with the new disclosure requirements in 2023,” he adds.
The new templates are the culmination of a 5-year journey, which began with the European Council’s 2017 “Action Plan to Tackle Non-Performing Loans in Europe,” followed in 2020 by the European Commission’s announcement of its strategy to prevent a future build-up of NPLs across the European Union, and the launch of a subsequent targeted consultation earlier this year.
Following the adoption of EBA’s draft ITS by the European Commission, the NPL templates are expected to become mandatory in early 2023 for European banks acting as sellers of NPLs.
EDW brought together industry experts and central bank representatives for a webinar on 31 January2023 to discuss the new templates, their implementation and scope, and what impact they are expected to have on the market in 2023 and beyond. The webinar slides, featuring a keynote presentation from EBA’s Oleg Shmeljov & Lidja Schiavo, can be downloaded by clicking below. Alternatively, visit the Archived Events section of our website to access the webinar recording.