2.6.2.1 NPE strategy options

The EBA Guidelines on management of non-performing and forborne exposures set out that banks should have in place an adequate NPE strategy to target a time-bound reduction of NPEs over a realistic but sufficiently ambitious time horizon. As part of this NPE strategy, banks should consider including options to achieve this objective. These options could include a hold/forbearance strategy, active portfolio reductions through sale, securitisation or write-offs, changes of type of exposure or collateral or legal options, including insolvency proceedings or out-of-court solutions.1