On May 4th, the European Banking Authority (EBA) published their report on non-bank lending in response to the European Commission’s request for advice in February 2021. The report intends to address risks of non-bank lending relating to supervision, consumer protection, anti-money laundering and countering the financing of terrorism.

The report identifies several key proposals for non-bank lending regulation, including:

• Enhancing the efficacy and fairness of disclosure requirements;
• Strengthening the requirements for creditworthiness assessments in the interest of consumers;
• Strengthening authorisation and admission provisions;
• Covering all non-bank lenders in a more comprehensive, EU wide, AML/CTF framework;
• Enhancing monitoring and reporting frameworks to avoid macroprudential risks.

For further information please contact Nicholas Smith ([email protected])