The BNB Governing Council has identified eight banks as other systemically important institutions (O-SIIs) and has set the level of the O-SII buffers for these banks. The O-SII buffers will be applicable from January 01, 2021. BNB has set the O-SII buffer of 1.00% for DSK Bank EAD, UniCredit Bulbank AD, and First Investment Bank AD; a buffer of 0.75% for United Bulgarian Bank AD, Eurobank Bulgaria AD, and Raiffeisenbank (Bulgaria) EAD; and a buffer of 0.50% for Central Cooperative Bank AD and Bulgarian Development Bank AD. In addition, BNB approved a request of the Association of Banks in Bulgaria to extend the payment moratorium amid the COVID-19 crisis.
BNB has approved an extension of the deadline for submission of requests from clients of banks for deferral of liabilities until March 23, 2021 as well as an extension of the deadline for approval of these requests by banks until March 31, 2021. BNB also extended the deadline for deferral of liabilities of bank customers until December 31, 2021, but not more than 9 months. The BNB Governing Council also decided to require banks to provide operational plans within 10 working days to assess the potential for non-payment by the borrowers who have benefited from the moratorium after its expiry. The requirements for these operational plans are introduced by the amended EBA guidelines on legislative and non‐legislative moratoria on loan repayments in the light of the COVID‐19 crisis.
- Press Release on Identified O-SIIs (in English)
- Press Release on Extension of Moratorium (in Bulgarian)
Keywords: Europe, Bulgaria, Banking, O-SII, Systemic Risk, COVID-19, Credit Risk, Regulatory Capital, Loan Moratorium, EBA, BNB
Previous ArticleAPRA Assesses Implementation of BEAR at Three Large Banks
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.
The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
In a response to the questions posed by a member of the European Parliament, the President Christine Lagarde highlighted the commitment of the European Central Bank (ECB) to an ambitious climate-related action plan along with a roadmap, which was published in July 2021.
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
The French Prudential Control and Resolution Authority (ACPR) published the corrective version of the RUBA taxonomy Version 1.0.1, which will come into force from the decree of January 31, 2022.
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.