Featured Product

    APRA Further Extends Support for Borrowers Impacted by COVID-19

    July 19, 2021

    The Australian Prudential Regulation Authority (APRA) is further extending support for loan repayment deferrals amid pandemic. This announcement largely mirrors the temporary support measures APRA had announced in March 2020. which ended on March 31, 2021. APRA plans to release an updated prudential standard in July 2021 to formalize this new treatment, in line with the approach taken in 2020. This treatment will be formalized as part of the Attachment E (COVID-19 Adjustments) to APS 220, the prudential standard on credit quality, and ARS 923.2, the reporting standard on repayment deferrals.

    A number of authorized deposit-taking institutions have announced COVID-19 support packages that will provide the affected small business and home loan customers with an option to defer their loan repayments. In response, APRA is providing regulatory relief to assist authorized deposit-taking institutions in supporting their customers through this period. Eligible borrowers include where the authorized deposit-taking institution reasonably believes that the borrower’s ability to repay according to the original loan terms has been, or is likely to be, affected by the COVID-19 pandemic and the loan was not 90 days past-due or impaired at the time a repayment deferral or restructure was provided to the borrower. For eligible borrowers, authorized deposit-taking institutions will not need to treat the period of deferral as a period of arrears or a loan restructuring. This will apply to loans that are granted a repayment deferral of up to three months before the end of August 2021. This will provide banks and borrowers with additional flexibility to manage the period ahead. The measures apply regardless of whether or not the borrower has previously been granted a repayment deferral due to the impact of the pandemic. For transparency, APRA will require authorized deposit-taking institutions to publicly disclose and report the nature and terms of any repayment deferrals and the volume of loans. Nonetheless, authorized deposit-taking institutions must continue to provision for these loans under the relevant accounting standards. 

     

    Related Link: Press Release

     

    Keywords: Asia Pacific, Australia, Banking, COVID-19, Credit Risk, Loan Moratorium, Payment Deferrals, APS 220, ARS 923.2, Lending, APRA

    Featured Experts
    Related Articles
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Examines Asset Encumbrance in Banking Sector

    The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Publishes Methodological Guide to Mystery Shopping

    The European Banking Authority (EBA) published a methodological guide to mystery shopping.

    July 21, 2021 WebPage Regulatory News
    News

    APRA Issues Update on Capital Reform Policy Settings for Banks

    The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.

    July 21, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Assess Continuity Planning of Market Infrastructures

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.

    July 21, 2021 WebPage Regulatory News
    News

    BoE Announces Changes to Validation Rules for Form BTL

    The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.

    July 20, 2021 WebPage Regulatory News
    News

    BCBS Proposes Changes to Process for Reviewing G-SIB Methodology

    The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.

    July 20, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7281