Featured Product

    PRA Explains Supervisory Approach to Credit Unions Amid COVID Crisis

    April 08, 2020

    PRA issued a letter explaining its supervisory focus and priorities for credit unions during the period of stress caused by the COVID-19 outbreak. The letter informs about the regulatory reporting extensions granted to credit unions and sets out the details of a PRA rule modification available to all credit unions until January 01, 2021. Credit unions have the option to consent to this modification such that the minimum provisioning requirements for bad debt will be reduced in line with the rates set out in the letter. Additionally, BoE announced that the Term Funding Scheme with additional incentives for Small and Medium-Size Enterprises (TFSME) will open for drawings on April 15, 2020. The scheme allows eligible banks and building societies to access four-year funding at rates very close to the Bank Rate and supports households and businesses during this period of economic disruption.

    PRA has consistently stressed the importance of sound governance, risk management, and general prudence in its past communications with the credit union sector. The letter states that it is crucial for credit unions to be mindful of these principles, especially in light of the current challenges. PRA is mindful of the operational challenges that may make certain aspects of credit union operations and compliance increasingly challenging. Thus, PRA will accept delayed submission for regulatory reports due on or before May 31, 2020. A two-month extension is being granted for annual returns and accounts. A one-month extension is being granted for quarterly returns. However these extensions should only be utilized where a credit union is experiencing challenges. 

    Additionally, where a credit union is either already below its capital requirement or projects to be so, it should notify PRA immediately as required by the Credit Union Rulebook Part 8.6. On receipt of that notification, PRA will engage with credit unions on a case-by-case basis. The starting point for that supervisory dialog is to seek assurance from the credit union on its plan to restore its capital. PRA also highlights that credit unions should be mindful of the liquidity requirements and that it expects credit unions to consider their specific liquidity situation, along with the associated risks, and act accordingly. PRA reiterates that it expects all credit unions to be mindful of their continuing and existing regulatory requirements, as set out in the PRA Credit Union Rulebook Part. PRA rules set out obligations with respect to credit risk management, credit control, record-keeping and the collection of adequate management information.

     

    Related Links

    Keywords: Europe, UK, Banking, COVID-19, SME, Credit Unions, Reporting, Reporting, Regulatory Capital, Liquidity Risk, Term Funding Facility, PRA, BoE

    Featured Experts
    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514