The SSM has been up and running for nearly a year and a half – and now is a good time to reflect on how it has fared so far. And I must say that our experience has been quite positive. But at the same time, it would be dishonest of me to say there weren’t any challenges still facing European supranational supervision.
For instance, when we account for the loss category, the NPL ratio as at June 2013, declined to 4.7 which compares favourably with prevailing NPL levels in other peer countries. 11. On the other hand, there is also the need to apply strict provisioning rules on overdraft facilities which are more prone to “ever-greening” than ordinary term loans.