Banks’ participation in the scheme should be voluntary and the various elements of their restructuring plans should be decided beforehand. Europe is also considering the introduction of mechanisms that set compulsory minimum write-downs, increasing over time, on new loans to be classified among non-performing exposures (known as calendar provisioning) – so as to reach high levels of coverage fast.
IT governance The large scale dependence on IT for not only day-to-day operations but also on managerial decision making raises the need for banks to have better focus on the IT implementations at their end.