​EBA observes an improvement in competent authorities’ practices on the supervision of non-performing loans

​The European Banking Authority (EBA) today published a follow-up to the 2022 Peer Review report on the supervision of the management of non-performing exposures (NPEs) by credit institutions. The findings of the follow-up Report show improvements in competent authorities’ supervisory practices that reflect the significant focus given to the supervision of NPEs by the EBA and competent authorities, and demonstrate that all competent authorities now fully or largely apply the EBA Guidelines on management of non-performing and forborne exposures. However, despite these positive results, the EBA cautions against complacency and encourages competent authorities to remain mindful and vigilant of the need to keep NPE ratios under scrutiny.