AFME engages in debates concerning the levels of non-performing loans (NPLs) in Europe. We have made a number of policy submissions on prudential topics, insolvency reform, and on measures to develop deeper European secondary markets for NPLs and distressed debt.


As the trade body representing Europe’s wholesale financial markets, AFME has been very engaged with our members in the various workstreams of the Council Action Plan to tackle NPLs in Europe adopted in July 2017.

Our contributions reflect perspectives from our broad membership including banks, as well as investors, law firms and other firms active in NPL markets. 

Why is tackling Europe's non-performing loans issue so important?

In this video we explain why reducing the relatively high level of non-performing loans (NPLs) held by European banks is a priority issue, and what action AFME thinks should be taken.


AFME is fully supportive of actions intended to remove impediments to the development and deepening of European secondary markets for NPLs and distressed debt. Various impediments could be tackled by measures that seek to standardise the NPLs sale process, including data requirements, as well as the approach and organisational needs of sellers and buyers.

See our response to the European Commission's consultation on The development of secondary markets for non-performing loans  for more detail.

Pablo Portugal
+32 (0)2 788 3974

Julio Suarez
Associate Director
+44 (0)20 3828 2726


 AFME has greatly contributed to the European insolvency reform debate. The inconsistencies between the substance and the quality of national insolvency regimes remain major impediments to avoiding a loan becoming an NPL and may also impede quick and efficient resolution of NPLs by banks and other entities. AFME supports the development of a European legislation harmonising minimum standards of insolvency proceedings as means to facilitate more predictable and orderly outcomes for corporate restructurings.

Gary Simmons
Managing Director 
+44 (0)20 3828 2723


AFME has also contributed to the Prudential aspects of the Council’s NPL action Plan via the AFME Prudential division. AFME strongly believes that regulatory efforts should focus on bank-specific measures. The European approach to loan loss provisioning should consider differences in recovery periods by jurisdictions, portfolios, or type of security.

Constance Usherwood
+44 (0)20 3828 2719