Forbearance - Exit criteria

Par 157 shall be interpreted extensively: it covers exposures that were non-performing prior to the extension of forbearance; exposures that have become non-performing subsequently to the extension of forbearance measures and those that becomes non-performing as soon as forbearance measures are extended. As a consequence, a homogeneous treatment is applied to exit the category of “non-performing forborne exposures”, regardless of the time when the exposures become non-performing. Par 157 is always applied to exit the category of “non-performing forborne exposures”. In the proposed example, both exposures A and B can exit the non-performing category after all criteria of par 157 are met and 1 year has passed. The wording of par 157 will be amended to clarify this point.   DISCLAIMER: The present Q&A on Supervisory reporting is provisional. It will be reviewed after the respective Implementing Regulation is in force and published in the Official Journal, which may differ from the text of the relevant draft ITS to which  it relates.