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