Featured Product

    BoE Clarifies Approach to Treatment of Payment Holidays on Form PL

    August 11, 2020

    BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL. In the last few months, many reporting entities have granted a significant number of payment holidays on loans, which has an impact on profit and loss. BoE aims to clarify its expectation of how this will impact the Form PL reporting. Form PL is used to collect data on the income and expenditure of a reporting institution. The data should be submitted via online statistical collection application (OSCA).

    As per the notice, the preferred treatment on the Form PL is that the accrued interest is reported as normal under interest receivable, but that the modification loss caused by granting the payment holiday is recorded as a negative amount in exceptional items (PL14D). This approach most effectively allows to distinguish between the banking services that have been provided by reporters on an ongoing basis during this period—including where payment holidays have been granted—and the exceptional PL impact of the pandemic. BoE also highlighted that any expected credit losses should be reported as usual on the provisions section of the Form PL. In an earlier statistical notice (2020/06) from July 2020, BoE had set out guidance on how interest receivable on loans under the three government coronavirus loan guarantees should be reported on Form PL. The three government coronavirus loan guarantees are Coronavirus Large Business Interruption Loan Scheme (CLBILS), Coronavirus Business Interruption Loan Scheme (CBILS), and Bounce Back Loan Scheme (BBLS). 

     

    Related Links

    Keywords: Europe, UK, Banking, COVID-19, Credit Risk, Form PL, Statistical Reporting, Payment Holiday, Loan Guarantee, BoE

    Featured Experts
    Related Articles
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR

    The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 2022 WebPage Regulatory News
    News

    MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy

    The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.

    May 12, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8196