Within the newly created banking union, the SSM has launched various initiatives to incentivise banks to reduce NPEs and to implement viable restructuring practices, as well as to achieve consistency in provisioning and realistic collateral valuation in line with accounting rules. The successful completion of the comprehensive assessment improved transparency in an unprecedented way and boosted the strengthening of banks’ balance sheets.
However, there can be no doubt about the need for investment processes to continue to be guided by sound investment principles and solid risk management policies and good governance and oversight structures. Conferences such as this one, which provide networking opportunities, facilitate knowledge transfer and capacity building therefore play a critical role.