In terms of legislation and practise, the ability and willingness of member states to realise the underlying assets and collateral pledged for non-performing loans, e.g. in the form of enforced sale, also differ. This is to a considerable extent politically or culturally motivated.
The volume of non-performing loans has fallen in most member states, and they have to a larger extent been taken into account in the banks' financial statements, e.g. in the form of impairment charges. All in all, the indicators show a clear improvement in the banks' soundness. As regards capital adequacy and liquidity, the EU requirements are generally met.