NFU welcomed the opportunity to provide views to EBA´s consultation on draft Guidelines on loan origination and monitoring. The purpose behind the development of the Guidelines is that institutions have robust and prudent standards for credit risk taking, management and monitoring, and that newly originated loans are of high credit quality.

The Guidelines were also developed in response to the European Council Action Plan on tackling the high level of non-performing exposures.

While NFU acknowledges the general idea of addressing credit risk and ensuring that institutional practices are aligned with consumer protection rules, we highlighted several areas of improvement in connection to remuneraton principles and practices; green lending; employee competence development; and more.

Read the full consultation reply here