The category of non-performing exposures can be broader than the category of defaulted or impaired exposures. Defaulted or impaired exposures are mandatorily considered as non-performing but non-performing exposures need not be impaired or defaulted. As a consequence, an exposure cannot exit the non-performing category as long as it is considered as defaulted or impaired, as stated in paragraph 156a of Annex V of Regulation (EU) No 680/2014 - ITS on Supervisory Reporting of institutions (ITS) and that exposure can remain classified as non-performing although it is not considered as defaulted or impaired anymore, when requirements in paragraph 156a are met but not those in paragraph 156b or 156c.

 

Paragraph 157 regulates the conditions for the discontinuation of the non-performing classification for non-performing exposures with forbearance measures (non-performing forborne exposures). These non-performing forborne exposures encompass exposures which have become non-performing due to the application of forbearance measures; exposures which were non-performing prior to the extension of forbearance measures; forborne exposures which have been reclassified from the performing category, including exposures reclassified in application of paragraph 179.

 

Non-performing forborne exposures have to meet specific criteria before seeing their classification as non-performing discontinued. In addition to not being considered as defaulted, impaired or non-performing, these exposures should also satisfy the criteria laid down in paragraphs 157b and 157c. A non-performing forborne exposure is not considered as defaulted or impaired by the institution could still be considered as non-performing forborne if it does not also fulfil all the other criteria in paragraph 157.