Non-performing loans, however, are one of the major roadblocks on the road towards further public risk-sharing. Following up to the 2014 comprehensive assessment, when for the first time the assets of banks were assessed with the same yardstick across the euro area, the Single Supervisory Mechanism is preparing guidance to banks on non-performing loans.
The increased competition between Fintech firms, BigTechs and banks contributes to the disaggregation of the established value chains. These developments can clearly have a disruptive impact on the payments market. When discussing the ample opportunities of payments in the future, we should not forget the challenges that arise concerning regulation and supervision.