EBA reports on the Benchmarking of National Loan Enforcement Frameworks

On 18 November 2020, the European Banking Authority (EBA) submitted its final report on the Call for Advice (CfA) on the Benchmarking of National Loan Enforcement Frameworks, that was asked for by the European Commission on 7 January 2019. The EBA was invited to conduct an ad hoc data collection from a sample of institutions, covering all EU Member States and an analysis. The CfA stems from the Communication on Completing the Banking Union and is a follow‐up to the Council´s request in the context of its action plan to tackle non-performing loans (NPLs) in the EU.

The main purpose of the report is to present the EU benchmarks for the main variables of interest, namely recovery rate, time to recovery and judicial cost to recovery. 
Also, it provides

• insights on the formal enforcement procedures, enacted both by creditors individually and by collective insolvency proceedings,
• a useful review of national insolvency practices in the EU at a time when the COVID‐19 pandemic can be expected to contribute to an increase in borrower defaults and insolvencies in the EU,
• and an identification of a number of variables that help to explain the observed differences in the benchmarks and contribute to the identification of best practices among the national regimes.

The full report on the CfA can be found here.