MFSA Issues New Banking Rule for COVID-19 Reporting and Disclosures
MFSA published a Circular for credit institutions on the issuance of a new Banking Rule BR/23 on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis. The new Banking Rule BR/23 will come into force with immediate effect. This recent communication clarifies expectations for both significant and less significant institutions. MFSA also published the reporting templates and instructions for COVID-19 data.
The rule intends to implement the provisions and requirements introduced by EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis (EBA/GL/2020/07). Through such implementation, the rule introduces additional reporting and disclosure requirements for credit institutions with respect to mitigating measures introduced in Malta to combat the negative economic consequences of the COVID-19 pandemic. Pursuant to such measures, credit institutions are obliged to report information, in accordance with the formats specified in the rule, on:
- Exposures that are subject to payment moratoria in accordance with the Moratorium on Credit Facilities in Exceptional Circumstances Regulations, 2020 (L.N. 142 of 2020) and the Central Bank of Malta (CBM) Directive No. 18 on Moratoria on Credit Facilities in Exceptional Circumstances
- Exposures that are subject to other forbearance measures introduced in response to the COVID-19 crisis
- Newly originated exposures subject to the Malta Development Bank COVID-19 Guarantee Scheme
Annex 1 to the rule provides credit institutions with the reporting templates, which are to be populated for submission to MFSA, together with further information on the reporting requirements laid down in the rule, including submission guidance. Annex 2 to the rule provides credit institutions with the reporting instructions to be followed with regard to the reporting templates in Annex 1. Finally, Annex 3 to the rule provides the disclosure templates that credit institutions are required to use for the publication of such information. Credit institutions shall report such data on a monthly basis and in line with the specified reference and remittance periods: reference reporting on the last day of each month and remittance reporting 42 calendar days following each above-specified reporting reference date. For significant institutions, the first reference and remittance dates are as per the Joint Supervisory Team communication. For the less significant institutions and significant subsidiaries, first reference date is June 30, 2020 and the first remittance date is August 11, 2020
Information on exposures subject to the Moratorium on Credit Facilities in Exceptional Circumstances Regulations and the CBM Directive No. 18. and on newly originated exposures subject to the MDB COVID-19 Guarantee Scheme shall be disclosed by credit institutions bi-annually. MFSA may consider the exercise of the waivers laid down in paragraph 21 of the rule to ensure proportional application of the newly introduced reporting and disclosure requirements.
.
Related Links
Keywords: Europe, Malta, Banking, Reporting, Disclosures, COVID-19, Basel, Credit Risk, MFSA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Related Articles
APRA Sets LAC for D-SIBs, Proposes to Enhance Crisis Preparedness
APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).
EC to Review Macro-Prudential Rules while ESRB Assesses Policy Stance
The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).
FSB Sets Out Good Practices for Crisis Management Groups
The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.
APRA Penalizes Heritage Bank for Incorrect Reporting of Capital
The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.
OSFI Releases Annual Report 2021-2022
The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.
OSFI Updates Timeline for Implementation of Certain Basel Rules
Through a letter addressed to the banking sector entities, the Office of the Superintendent of Financial Institutions (OSFI) announced deferral of the domestic implementation of the final Basel III reforms from the first to the second quarter of 2023.
EC Defers Adoption of Regulatory Standards for Disclosures Under SFDR
EIOPA recently published a letter in which EC is informing the European Parliament and Council that it could not adopt the set of draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR) within the stipulated three-month period, given their length and technical detail.
FCA Releases MIFIDPRU Application Forms and Third Set of Rules on IFPR
The Financial Conduct Authority (FCA) published the third in a series of policy statements that set out rules to introduce the UK Investment Firm Prudential Regime (IFPR), which will take effect on January 01, 2022.
APRA Finalizes Capital Adequacy Standards for Banks
The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.
CPMI-IOSCO Seek Comments on Access to Central Clearing and Portability
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.
