ECB is allowing significant institutions to delay the submission of supervisory data under the technical standards on supervisory reporting and benchmarking of internal approaches. The allowed delay is one month, for remittance dates between March 2020 and May 2020. In addition, ECB is postponing by one month the remittance dates for its most recurring requests falling between March 2020 and May 2020. The individual Joint Supervisory Teams will communicate an updated remittance calendar to the banks they cover. ECB also published the frequently asked questions (FAQs) on supervisory measures of ECB in response to COVID-19 outbreak.
The FAQs provide clarifications on the relief measures announced so far, including those regarding asset quality deterioration and non-performing loans (NPLs), operational aspects of supervision, and capital and liquidity requirements. With respect to reporting, ECB emphasized that the liquidity coverage ratio (LCR) and Additional Liquidity Monitoring Metrics (ALMM) templates have been identified as a priority and should be reported as planned. However, the submission of the information on funding plans can be delayed by two months.
ECB also expects supervised institutions to apply the EBA harmonized reporting framework version 2.9 with the reference date March 31, 2020, in accordance with the adopted Implementing Act amending Regulation 680/2014. The grace period of one month should also be granted to less significant institutions that are subject to EBA and ECB reporting obligations under the implementing technical standards, the ECB FINREP regulation, and other rules. This flexibility is expected to reduce the operational burden on banks in the coming weeks and months and to enable banks to report with an adequate level of data quality. The measures may be extended or reviewed at a later date in response to further developments with respect to the COVID-19 outbreak.
Keywords: Europe, EU, Banking, COVID-19, Reporting, Deadline Extension, FAQ, Benchmarking, Reporting Framework 2.9, FINREP, Internal Approaches, EBA, ECB
HKMA, together with the Banking Sector Small and Medium-Size Enterprise (SME) Lending Coordination Mechanism, announced a ninety-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme.
The Advisory Scientific Committee of ESRB published a response, in the form of an Insights Paper, to the EBA proposals for reforms to the stress testing framework in EU.
MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.
PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance.
EBA published the final draft implementing technical standards for disclosures and reporting on the minimum requirements for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) requirements in EU.
EBA published an erratum for the phase 2 of technical package on the reporting framework 2.10.
EC published the Implementing Regulation 2020/1145, which lays down technical information for calculation of technical provisions and basic own funds.
FFIEC, on behalf of its members that include US Agencies such as CFPB, FDIC, FED, NCUA, and OCC, issued a joint statement that sets out prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers.
PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).