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Archive » July 2020 » The new European Definition of Default: the implementation project of Ubi Banca

The new European Definition of Default: the implementation project of Ubi Banca

Francesco Bianchi, Riccardo Cermelli, Susanna Fantino, Carla Mattiussi
July 2020 - n. 7-8
Keywords: Npl, banche, default
Jel codes: G21, G28

The last decade has identified a particularly complex transition for European banking systems, particularly in Italy where banks had to face an unexpected escalation of Npls. To face the impacts on the banks capital absorptions, the Ecb approved an action plan to define new and more stringent criteria for the classification by default of borrowers. In 2017 Eba issued the «Guidelines on the application of the definition of default» to be adopted by banks by January 1, 2021. Ubi Banca, as a significant institution, implemented the so-called New DoD (Definion of Default) in 2019, completing its implementation in a relatively limited time, thus allowing it to anticipate Eba requests.

 

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