FINMA Issues Further Guidance for Banks in Context of COVID-19 Crisis
FINMA published Guidance 03/2020, which provides information about exemptions and clarifications related to supervisory practices in the context of the COVID-19 crisis. With this guidance, FINMA is communicating further measures for supervised entities as well as provided certain clarifications to the banking sector. These clarifications relate to the leverage ratio relief, dividend distribution, accounting treatment of COVID-19 loans, and treatment of COVID-19 loans in the interest rate risk report.
The guidance also states that if, due to the COVID 19 pandemic, insurance companies, insurance groups, and conglomerates are not able to submit or publish certain reports in due time this year, the submission period will be extended, until May 31, 2020, on notification to FINMA. The notification must be made to FINMA before April 30, 2020. FINMA is willing to approve requests from insurance companies for a temporary smoothing of the yield curves for various currencies, to reduce daily fluctuations of the Swiss Solvency Test. In addition, FINMA is granting the insurance companies more time to submit their supervisory reporting to FINMA.
Related Links
- Press Release
- Guideline 03/2020 (PDF in German)
Keywords: Europe, Switzerland, Banking, Insurance, Accounting, COVID-19, Reporting, Dividend Distribution, Interest Rate Risk, Leverage Ratio, Credit Risk, FINMA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
FCA Publishes Business Plan for 2020-21Next Article
MAS Amends Notices on Residential Property LoansRelated Articles
EC to Defer Application of SFDR Standards Till July 2022
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
EBA Seeks Views on Proportionality Assessment Methodology
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
US Agencies Propose Changes to Call Reports and Instructions
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
EBA Examines Asset Encumbrance in Banking Sector
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
EBA Publishes Methodological Guide to Mystery Shopping
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
APRA Issues Update on Capital Reform Policy Settings for Banks
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
CPMI-IOSCO Assess Continuity Planning of Market Infrastructures
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
ESMA Responds to Proposal Related to Sustainability Standards Board
The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.
