Responsible lending in times of crisis

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The European Banking Authority (EBA) published the final guidelines on loan origination and monitoring in May 2020. These guidelines aim to improve the lending standards and asset quality of lenders after June 2021, and bring together the prudential standards for lenders, borrower protection, anti-money laundering and sustainability.

These new guidelines were discussed during the CEPS-ECRI webinar by stakeholders involved in their preparation and affected by them. To what extent do they strike the right balance between economic growth, financial stability and consumer protection? Is the guidance on the creditworthiness assessment fit for purpose? What is the likely impact on both lenders and borrowers? What more is required to promote responsible lending?

Willem Pieter de Groen is Research Fellow and Head at the Financial Markets & Institutions Unit, CEPS. Beatriz Pozo Pérez is Membership and Events Coordinator at the Financial Markets & Institutions Unit, CEPS

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