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ABI-German banks, flexible rules to lighten crisis impact

A joint document, current rules decided before the pandemic

16 February, 13:10
(ANSA) - ROME, 16 FEB - "It's necessary to reshape the path of the Banking Union, and refocus the regulatory asset towards the finalization of Basel 3 in Europe and adapting the treatment of impaired loans in compliance with the current economical scenario". The Italian Banking Association (ABI) and the German Banking Industry Committee (GBIC) wrote their requests to European institutions to reduce the impact of the Covid crisis.

"The solutions identified concern, in particular - the document explains - the crisis management of banks directly subject to national supervision and a more calibrated adoption of the completion of the Basel 3 regulatory framework." "The new rules of European supervision - Giovanni Sabatini, Director General of the Italian Banking Association underlined - were conceived before the pandemic, in a context which was completely different from the current one: it is necessary to continue to call on the EU to correct these rules." ABI and GBIC underlined that the regulatory framework for banking crisis management should consider the principle of proportionality and must be in line with the principle of subsidiarity. Furthermore, the current regulatory treatment of non-performing exposures should be revised and adjusted in light of the pandemic crisis. Among the requests contained in the chapter focusing on NPLs, the proposal is to freeze the schedule of provisions for 24 months. Finally, for operators who purchase impaired loans, the deadlines set by the "Npl backstop Regulation" should start only from the date of acquisition of the impaired asset." (ANSA).

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