The European Commission has published a communication that provides guidance for the treatment of impaired assets in the EU banking sector. The communication focuses on issues that Member States address when considering, designing and implementing asset-relief measures.

The communication also sets out guidance on the application of state-aid rules to asset-relief, focusing on issues such as:

  • Transparency and disclosure requirements.
  • Burden sharing between the State, shareholders and creditors.
  • Aligning incentives for beneficiaries with public policy objectives.
  • Principles for designing asset-relief measures in terms of eligibility, valuation and management of impaired assets.
  • The relationship between asset-relief, other government support measures and the restructuring of banks.

View Commission provides guidance for the treatment of impaired assets in the EU banking sector, (PDF 188KB), 26 February 2009