Difference between revisions of "NPL Directive"
From Open Risk Manual
Wiki admin (talk | contribs) |
Wiki admin (talk | contribs) |
||
| Line 2: | Line 2: | ||
'''NPL Directive''' is the informal name of ''DIRECTIVE (EU) 2021/2167 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 24 November 2021 on credit servicers and credit purchasers and amending Directives 2008/48/EC and 2014/17/EU''.<ref>[https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A32021L2167 EUR-LEX]</ref> | '''NPL Directive''' is the informal name of ''DIRECTIVE (EU) 2021/2167 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 24 November 2021 on credit servicers and credit purchasers and amending Directives 2008/48/EC and 2014/17/EU''.<ref>[https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A32021L2167 EUR-LEX]</ref> | ||
| + | == Motivation == | ||
| + | The Directive should enable [[Credit Institution | credit institutions]] to better deal with loans that become [[Non-Performing Loan | non-performing]] by improving conditions for the sale of the credit to third parties. Moreover, when credit institutions face a large build-up of NPLs and lack the staff or expertise to properly service them, they should be able either to outsource the servicing of those loans to a specialised [[Credit Servicer]] or to transfer the [[Credit Agreement]] to a [[Credit Purchaser]] that has the necessary [[Risk Appetite]] and expertise to manage it. | ||
Revision as of 16:39, 3 June 2022
Definition
NPL Directive is the informal name of DIRECTIVE (EU) 2021/2167 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 24 November 2021 on credit servicers and credit purchasers and amending Directives 2008/48/EC and 2014/17/EU.[1]
Motivation
The Directive should enable credit institutions to better deal with loans that become non-performing by improving conditions for the sale of the credit to third parties. Moreover, when credit institutions face a large build-up of NPLs and lack the staff or expertise to properly service them, they should be able either to outsource the servicing of those loans to a specialised Credit Servicer or to transfer the Credit Agreement to a Credit Purchaser that has the necessary Risk Appetite and expertise to manage it.
