What are NPLs? How are they treated globally?What are the main risks NPLs may pose?

Critically evaluate the EU regulatory framework of NPLs, considering the latest developments in its supervisory tools.
You may also find it useful to review the chapter through the following questions:

What are NPLs? How are they treated globally?
What are the main risks NPLs may pose?
What are the supervisory tools to monitor NPLs?
What are the resolving procedures for NPLs?