MNB issued guidance on the correct presentation of certain regulatory modifications, which were announced to reduce the economic impact of COVID-19 pandemic, in liquidity reporting. MNB provided information regarding reports on cash flow, liquidity coverage ratio (LCR), and foreign exchange financing compliance indicator (DMM/KONSZDMM/KDMM). Announcements also cover information on reporting of repayment moratorium. Additionally, MNB announced requirements for the extraordinary reporting for enhanced monitoring of lending, liquidity, and portfolio quality of credit institutions to assess the negative effects of the COVID-19 pandemic. MNB has provided the list of credit institutions that are required to provide this extraordinary information.
MNB issued a letter to domestic lending and payment institutions asking them to prepare for the period following the end of the repayment moratorium by strengthening their business and monitoring processes. The institutions have been asked to develop financing schemes and payment offers that will enable them to remedy any payment difficulties of their debtors. The central bank will continuously monitor the restructuring of the internal operations of lending and payment institutions, their adaptation to the new economic situation, and their preparations for the post-payment moratorium period.
With regard to the decision of MNB on extraordinary reporting, MNB requires credit institutions to comply with the following:
- One-time submission of the supervisory report with the identification code L11 MNB for the first quarter of 2020, by May 08, 2020 at the latest
- Submission of HDMM/HKONSZDMM/HKDMM board-code surveillance reports on a monthly basis, for the first time for March 2020 and for the last time for December 2020
- Submission of supervisory report with the MNB identification code V01 on a weekly basis, for the first time on March 23-29 2020 and for the last time for the period from December 28, 2020 to January 03, 2021
- Submission of supervisory report with the MNB identification code L74 on a monthly basis, for the first time for March 2020 and for the last time for December 2020
- Submission of the monitoring report with board code SF1901 on a monthly basis, for the first time for March 2020 and for the last time for December 2020
- Submission of a textual report in response to the questions set out in the Annex to the MNB decision on a weekly basis, starting no later than on March 24, 2020, thereafter no later than on Thursday each week until December 31, 2020
Keywords: Europe, Hungary, Banking, COVID-19, Reporting, LCR, Loan Moratorium, Liquidity Risk, Credit Risk, MNB
Previous ArticleFSI Brief Analyzes Measures on Expected Loss Provisioning Amid COVID
The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).
The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.