Featured Product

    PRA to Partly Apply EBA Guidelines on Disclosures for COVID Measures

    July 10, 2020

    PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis. In a statement issued on June 24, 2020, PRA had announced that it does not consider it necessary to extend, to UK credit institutions, the supervisory reporting elements of these EBA guidelines. Therefore, firms are not expected to prepare or transmit the reporting templates within these EBA guidelines to PRA. Additionally, PRA had announced that it was considering how the disclosure elements of the EBA guidelines are to be applied. PRA has now updated its earlier statement clarifying its stance on the application of disclosure elements of the EBA guidelines. As per the statement, PRA sees the benefit in disclosures related to these COVID-19 measures, but it plans to implement the EBA guidelines with a number of modifications and is in the process of finalizing the associated disclosure templates.

    PRA considers that there is substantial benefit to disclosure-users from public information about the effects of the measures that UK firms have taken in response to the COVID-19 crisis. Nevertheless, PRA intends to exercise the options available in the EBA guidelines to ensure they are implemented in a proportionate manner. Thus, PRA expects that certain UK banks and building societies should make disclosures similar to those prescribed by the EBA guidelines while incorporating a number of modifications that PRA will set out. The UK banks and building societies that should make these disclosures are those that are, or are controlled by, global or other systemically important institutions designated by  PRA in the most recent list and those that have retail deposits equal to or greater than GBP 50 billion on an individual or consolidated basis, PRA expects such firms to make these disclosures for the highest level of consolidation in the UK. PRA is finalizing the design of the disclosure templates, including to ensure they capture the full range of payment moratoria available within the UK, and will share these with relevant firms directly in due course.

    PRA realizes that there may be practical difficulties caused by the publication of the EBA guidelines and templates and the details of the PRA implementation of the EBA guidelines, close to the June 30, 2020 disclosure reference date. With this in mind, PRA does not expect that firms include these disclosures in the main Pillar 3 disclosures made for the Tuesday June 30, 2020 reporting period and accepts that firms may need to make disclosures for the Tuesday June 30, 2020 reference date at a later time. However, any such delay to the publication of these additional disclosures should be no longer than necessary.

     

    Related Links

    Keywords: Europe, UK, Banking, COVID-19, Loan Moratorium, Credit Risk, Disclosures, CRR, Basel, EBA, PRA

    Featured Experts
    Related Articles
    News

    BCBS Consults on Principles for Operational Risk and Resilience

    BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.

    August 06, 2020 WebPage Regulatory News
    News

    FSI Note Discusses Challenges Associated with COVID Relief Measures

    The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.

    August 06, 2020 WebPage Regulatory News
    News

    HKMA Announces Repayment Deferment Under Payment Holiday Scheme

    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.

    August 05, 2020 WebPage Regulatory News
    News

    ESRB Paper Presents Alternative Approach to EBA Stress Test Proposal

    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.

    August 05, 2020 WebPage Regulatory News
    News

    MAS Announces Key Initiatives to Support Adoption of SORA

    MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.

    August 05, 2020 WebPage Regulatory News
    News

    BoE Updates Template and Definitions for Form ER

    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.

    August 05, 2020 WebPage Regulatory News
    News

    PRA to Extend Temporary High Balance Coverage Amid COVID Crisis

    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.

    August 04, 2020 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure and Reporting of MREL and TLAC

    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.

    August 03, 2020 WebPage Regulatory News
    News

    EBA Releases Erratum for Phase 2 Package on Reporting Framework 2.10

    EBA published an erratum for the phase 2 of technical package on the reporting framework 2.10.

    August 03, 2020 WebPage Regulatory News
    News

    EC Sets Out Updated Technical Information for Solvency II Calculations

    EC published the Implementing Regulation 2020/1145, which lays down technical information for calculation of technical provisions and basic own funds.

    August 03, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5635