It is evident that a significant proportion of current arrears cases fall into the latter category, as seems to be confirmed by the measured characteristics of households in arrears, as well as the practical experience of lenders in engaging with borrowers. Getting these cases back on track is a crucial part of what is now needed.
To shore up confidence in the EU (European Union)’s resolution framework, the ECB (European Central Bank), the European Banking Authority ( EBA (European Banking Authority)) and the Single Resolution Board ( SRB (Single Resolution Board)) confirmed that common equity instruments would be the first in line to absorb losses.