New Regulation for Loan Origination and Monitoring and Bankruptcy Law
June 2021 was an important milestone for the regulatory framework on Loan origination and monitoring: the entry into force of the EBA LOM guidelines finally took place, concluding a process started last May 2020.
The European Banking Authority (EBA) developed a package of specific Guidelines on loan origination and monitoring (LOM) after the Council of the European Union’s Action Plan developed for dealing with high level of non-performing exposures.
EBA Guidelines have not failed to set out expectations for institutions data infrastructure and lending activities involving technology-enabled innovation. Italy, meanwhile, has approved the so-called “Codice della crisi d’impresa e dell’insolvenza” (DPR (2019), in application of the law 155/2017 - D. Lgs n. 14/2019).
These recent regulations, amplified in priority due to the COVID-19 emergency, come into focus with a backdrop of additional hardships in the economic environment during the last years.