This is an update of an article originally published on 5 June 2023 as part of our publication "Securitisation markets and regulation: choosing different paths?", accessible here.

A number of broader macroeconomic drivers look likely to increase the relevance of the secondary markets for non-performing loans in H2 2023. These include the COVID aftermath, the Ukraine war and rising interest rates. Combined with regulatory pressure to reduce NPL exposures, EU banks are likely to be looking for ways to exit NPL positions.

In this article, we examine the options available to EU banks in light of the EU NPL Directive and the disclosure templates the EBA recently published for use in NPL portfolio sales.

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