Avoid defaults - apply forbearance etc.

Our offer

zeb offers you a comprehensive and pragmatic set of tools:

  • Use of the scope of existing and new regulations for forbearance measures and non-cyclical mapping of credit risk provisions
  • Pragmatic technical implementation of the Forbearance measures
  • Management of supervisory dialogue and reporting

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Our approach

The primary goal must be to avoid unnecessary credit defaults; the method of choice for achieving this is a forward-looking restructuring of annuities (“forbearance”).

National legislative changes are currently being initiated to prevent a wave of insolvencies, see, for instance, a draft law in Germany.

A regulatory concession to ease the burden on banks is already aimed at avoiding defaults in the case of forbearance measures and procyclical risk provisioning. In particular, this can help prevent “cliff effects” from IFRS9 stage transfers.

The use of existing and amended regulations, combined with dialogue with supervisors, is necessary to avoid failures in forbearance measures.
Supervisory dialogue is further necessary in order to create new scope for an extended implementation of forbearance measures for an even more effective avoidance of defaults.


Medium/High: Implementation of regulations and supervisory dialogue
High after further changes
Impact: NPLs, P&L, capital requirements


Regarding the topic "Build competencies in restructuring, settlement and NPL management": Operational NPL management should avoid failures

Relevance to

  • Credit risk management
  • Intensive support
  • Problem loan management
  • Accounting