Regulatory Alerts2026-03-04
Added · Updated
Q&A Application by DNB of the ECB Guideline on the Coverage of Non-Performing Exposures for LSIs
DNB applies the supervisory approach to all Dutch Less Significant Institutions with a non-performing exposures ratio higher than 3%, with exceptions for specialized debt restructurers or specific circumstances. Institutions within scope are notified annually before 31 January and receive data requests, with potential supervisory measures imposed through the Supervisory Review & Evaluation Process. The ECB Guideline (EU) 2025/2595 sets binding expectations for coverage of non-performing exposures from loans granted before 26 April 2019, featuring a transitional regime with lower expectations for 2026–2028 and full application from 2029 onward.
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