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

    BIS Quarterly Review Discusses Developments in Fintech and ESG Space

    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.

    September 20, 2021 WebPage Regulatory News
    News

    BCBS to Consult on Supervisory Practices for Climate Risks by Year-End

    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

    September 20, 2021 WebPage Regulatory News
    News

    OCC Identifies Operational Risk Deficiencies in MUFG Union Bank

    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.

    September 20, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write Down and Conversion Powers

    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.

    September 17, 2021 WebPage Regulatory News
    News

    ECB to Consider Climate Risks When Reviewing Collateral Framework

    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.

    September 17, 2021 WebPage Regulatory News
    News

    SRB Provides Update on Approach to Prior Permissions Regime

    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.

    September 16, 2021 WebPage Regulatory News
    News

    APRA Issues Further Guidance on Application of Securitization Standard

    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.

    September 16, 2021 WebPage Regulatory News
    News

    ACPR Publishes Corrective Version of RUBA Taxonomy

    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.

    September 15, 2021 WebPage Regulatory News
    News

    Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics

    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.

    September 15, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    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.

    September 15, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7487