Recital 9

(9)Regulation (EU) 2019/630 of the European Parliament and of the Council ⁵ introduced in Regulation (EU) No 575/2013 a prudential backstop for non-performing exposures (NPEs) imposing a deduction from institutions’ own funds where NPEs are not sufficiently covered by provisions or other adjustments, following a predefined calendar to build up a full coverage over time. That prudential backstop is based on the definitions of ‘non-performing exposure’ and ‘forbearance measures’ laid down in Implementing Regulation (EU) No 680/2014. It is therefore necessary to amend templates and instructions to ensure that there is a single definition of ‘non-performing exposure’ and ‘forbearance measures’ for both reporting and prudential backstop purposes. New templates are also necessary for the collection of information for the backstop calculation.