2024-11-28

Added 2026-06-23 · Updated 2026-08-20

Circular Letter No. CC/2024/00000049

The Banco de Portugal establishes minimum prudential coverage expectations for non-performing exposures (NPEs) originated before April 26, 2019, applicable to less significant credit institutions in Portugal. Institutions must ensure 100% coverage for specific aged NPE categories by December 31, 2024, with a three-year transition period allowing progressive increases according to an annexed schedule. Compliance is assessed via the SREP process from December 31, 2025, and failures to adequately cover credit risk may result in additional capital requirements or deductions.

Portugal

Banco de Portugal

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