The draft guidance sets out ECB Banking Supervision’s expectations on NPL workout and resolution and is focussed on addressing the issues surrounding the stock of NPLs that has piled up in the balance sheets of a number of euro area banks. The structure of the guidance follows the life cycle of NPL management.
ECB President Mario Draghi himself, when asked at the last press conference in Frankfurt said: “Accordingly, the Governing Council will closely monitor all relevant incoming information.