Directive 2021/2167 of 24 November 2021 on credit servicers and credit purchasers was finally published in the Official Journal of the European Union on 8 December 2021. This directive aims to create a secondary market for non-performing loans (NPLs), so that banks can deal with them on their balance sheets and thus reduce the risk of future NPL accumulation.

Loan officers and credit buyers, who have a key role to play in this respect, will now be subject to a specific regulatory framework. Depending on the role they intend to play in relation to NPLs, banks will be able to provide new services that comply with the requirements of the Directive. The ABBL has identified various business cases that could constitute opportunities for banks in relation to this new legislation.

By Jonathan Hug