We comment on recent developments regarding the data requirements for NPL transactions and the revised data templates published by EBA on May 4th.
NPL Portfolio Transactions - Data Requirements
By Burkhard Heppe
Published Wednesday 12 May, 2021
We identify the most important data sets and fields for investors. We comment on the revised NPL data templates that EBA published on May 4th which saw the number of proposed fields reduced by half. We explore whether such a far reaching simplification is justified. The EBA NPL template is expected to be used between buyers and sellers and could also be the template to disclose loan-level data publicly to a central Data Hub that was recently proposed by the European Commission. For banks, the management of recovery cash flow data is important even if they do not want to sell. In this article we aim to provide guidance on which data is most important for executing transactions, valuation and reporting.
You can access the full technical paper by clicking here:
Heterogeneity matters: the benefits of loan-level investor reports for NPL transactions
Tuesday 10 March, 2020