The Committee therefore expects that if a bank is authorised and decides to acquire cryptoasset exposures or provide related services, it should at a minimum: Firstly, perform due diligence prior to acquiring exposures to crypto-assets or providing related services, Secondly, have a clear and robust risk management framework that is appropriate for the risks of its crypto-asset exposures and related services; Thirdly, publicly disclose any material crypto-asset exposures or related services as part of its regular financial disclosures and specify the accounting treatment for such exposures; Fourthly, inform its supervisory authority of actual and planned crypto-asset exposure or activity in a timely manner and provide assurance that it has fully assessed the permissibility of the activity and the risks associated with the intended exposures and services, and how it has mitigated these risks.
Unlikely-to-pay exposures account for half of total NPLs; swift action is required to maximize their value, especially by means of restructuring agreements to set firms back on the path to sustainability. The 2015 reform introduced tools that give financial creditors far greater room for manoeuvre under these agreements; they should be exploited fully.