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

    APRA Consults on Reporting Standard for Credit Risk Management

    APRA is consulting on the reporting standard for credit risk management (ARS 220.0).

    October 28, 2020 WebPage Regulatory News
    News

    Regulators Fine Goldman Sachs for Risk Management Failures

    FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).

    October 23, 2020 WebPage Regulatory News
    News

    ISDA Launches IBOR Fallbacks Supplement and Protocol

    ISDA launched the IBOR Fallbacks Supplement and the IBOR Fallbacks Protocol, with both becoming effective on January 25, 2021.

    October 23, 2020 WebPage Regulatory News
    News

    Canada Hosts International Conference of Banking Supervisors

    BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.

    October 22, 2020 WebPage Regulatory News
    News

    FCA Proposes More Measures to Help Insurance Customers Amid Crisis

    FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.

    October 21, 2020 WebPage Regulatory News
    News

    EBA Issues Opinion to Address Risk Stemming from Legacy Instruments

    EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.

    October 21, 2020 WebPage Regulatory News
    News

    ESRB Publishes Non-Bank Financial Intermediation Risk Monitor for 2020

    ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).

    October 21, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Policy Statement Amending Benchmarks Regulation

    HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.

    October 21, 2020 WebPage Regulatory News
    News

    APRA Initiates Action Against a Bank for Liquidity Compliance Breach

    APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.

    October 21, 2020 WebPage Regulatory News
    News

    European Council Adopts Position on Capital Markets Recovery Package

    Ambassadors of EU member states agreed on the mandate of European Council on the Capital Markets Recovery Package, to support economic recovery from the COVID-19 crisis.

    October 21, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6011