1. NPLs in Italy Silvia Cappelli Member of the Board of TEGoVA
Member of the European Valuation Standards Board
ASSOVIB: Responsible for International Relations &
Member of the Technical Scientific Committee

2. A ghost is threatening Europe
NPL

3. NPL RATIO IN EUROPE (%)
Fonte: European Bank Authority, Risk Dashboard, 2016

4. Italian gross NPE rate European average rate of Big Banks NPL
Addendum to the ECB Guidance to banks on nonperforming loans
Addendum to the ECB Guidance to banks on nonperforming loans
Guidelines on management of non-performing
Guidelines on management of non-performing
European average rate of Big Banks NPL
European average rate of Big Banks NPL

5. Gross NPE and Bad Loans trend NPLs transactions in the Italian market
Italian NPLs: is the solution on its way?
Gross NPE and Bad Loans trend
NPLs transactions in the Italian market
Consumer Credit
Mixed Secured/Unsecured
Mainly Unsecured
Other
Note: NPE gross from FY 2017 non including MPS

6. Tool used for the settlment of NPLS in Italy
Focus on RE NPLS

7. Average time to terminate a foreclosure procedure – a European comparison (months)

8. GUIDELINES TO BANKS ON NPLS March 2017
Chapter 7 Collateral valuation for immovable property
GOVERNANCE, PROCEDURE AND CONTROLS
General policies and procedures
Monitoring and controls
Frequency of valuations
VALUATION METHODOLOGY
Individual vs indexed valuations
Appraisers

9. ADDENDUM TO GUIDELINES
March 2018

10. Guidelines for Valuation of real estate as collaterals of NPL Loans

11. Standardised definitions and approach
Who:
Who:
When:
When:
Working group from January 2017 to January 2018 – Protocol on January 2018
What:
What:
Self-regulatory protocol to support a more efficient management of debt recovery
Why:
Why:
Provide guidance for valuers and all players involved in the foreclosure process
Transparency
Accuracy
Reliability
Standardised definitions and approach

12. CONTENTS
The Valuer
The Market Value
The FORCED SALE VALUE/JUDICIAL VALUE (Market Value with Assumptions)
Due Diligence
Valuation Certificate
Appendix 1 – The Valuation of Special Assets
Retail premises
Hotel
Development
Rural entities
Appendix 2 – Regulatory framework on competence and independence of valuers
Appendix 3: The leasing contracts

13. Considerable difference between the conditions whereby a property is sold in the event of an auction or through the free market
The access to the property is often denied or actually impossible for the potential buyer
The conditions of the credit offer are limited, if compared to a «traditional» property purchase on the free market
The timescale whereby the new owner actually takes possession of the property is still not determined because the property occupier often creates obstacles in order to postpone the sale of the property
The seller/debtor is not willing to dispose of the property
The valuations are often carried out well before the real disposal date

14. The Valuation Certificate
When:
EVS 2016 (Chapter 5 §4.4)
Summary of main contents of the Valuation Report. It might be also a separate document or it might be included in the Valuation Report
What:
To promote better access to information for the purpose of property advertising and to provide a standardised information document
Why: