NPL initiative sets standards for platform providers – survey of market participants launched
- EU Commission supports project
- Deutsche Kreditmarkt-Standards (DKS) offers umbrella association
- Link to survey: https://www.surveymonkey.de/r/Z3QWPBM
- Debitos CEO Timur Peters: «Standardization drives the market forward”
For several years now, the European Commission has regularly pointed out the need to use NPL platforms as an essential sales channel for non-performing loan transactions. The marketplaces have an important role to play in ensuring that European banks get their NPL problem under control in the long term. In order to harmonise the requirements placed on platform providers and set important standards, a new initiative has now been launched with the participation of the EU Commission. European banks, international investors, loan servicers, transaction advisors and platform providers such as Debitos are involved in shaping the initiative. The umbrella organisation is the Deutsche Kreditmarkt-Standards (DKS).
However, before the standards for the providers of NPL platforms are defined, there should first be well-founded feedback from market participants on the requirements. A comprehensive survey (https://www.surveymonkey.de/r/Z3QWPBM), which was developed by the initiative in cooperation with the EU Commission and the DKS, is open until 15 November. «More standardisation will lead to a more active NPL secondary market and thus significantly advance the market – this is also the state of discussion with the European Commission,» said Debitos CEO Timur Peters. The survey results are to be presented to the EU Commission at the end of 2019 or the beginning of the new year and then implemented as quickly as possible.
This year, two NPL roundtables took place in Brussels in January and June, attended by many market participants and representatives of the Commission, the European Banking Supervision Authority and the ECB. The establishment of the initiative was agreed between the market participants and the DKS in September 2019. «The negotiations were tough, but now we are very happy that things have finally started to move. Of course, we are also pleased that we have found a competent partner in DKS, who will actively support us in shaping the initiative», commented Timur Peters.
Debitos is an online marketplace which enables companies, banks and funds to sell their credit exposures on the market through its open and transparent auction-based online transaction platform. The platform leverages on the digitalization of the entire sale process and can reduce the expected disposal timing to 3-8 weeks compared to 3-6 months of the traditional process. Debitos was founded in Frankfurt in 2010 and has since concluded more than 280 online transactions with a total gross book value in excess of €4bn. By now more than 700 investors from all over the world have registered with Debitos.
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