Featured Product

    BDE Amends Financial Reporting Requirements for Credit Institutions

    June 16, 2020

    BDE has published two circulars (3/2020 and 2/2020) that amend Circular 4/2017 for credit institutions on public and confidential financial reporting rules. Circular 3/2020 introduces changes on the credit-risk classification of forborne exposures. Circular 2/2020 increases the reporting requirements of banks in respect of non-performing and forborne exposures and foreclosed collateral, supplements the information on operating and administrative expenses, and incorporates minor changes to the data to be reported on leases as a result of the entry into force of IFRS 16 on leases. The circulars will enter into force the day following their publication in the "Official State Gazette."

    In response to COVID-19, Circular 3/2020 is intended to allow greater flexibility in applying expert judgment for the credit-risk classification of forborne exposures. Specifically, the new Circular allows rebuttal of the presumption that the granting of these loans would always result in a significant increase in credit risk. Banks may rebut this presumption and classify the loans as performing, if they consider that there has been no significant increase in credit risk, notwithstanding the requirement that they be identified as forborne exposures for their proper monitoring and risk management. This amendment allows the entities subject to Circular 4/2017 to make greater use of the flexibility in the EBA guidelines on the credit risk management practices of credit institutions and the accounting for expected credit losses (EBA/GL/2017/06). 

    Circular 2/2020 intends to incorporate changes related to the reporting requirements applicable to credit institutions, which were introduced by the Commission Implementing Regulation 2020/429 and ECB Regulation  2020/605. To comply with the ESRB recommendation on closing real estate data gaps, this circular introduces changes to the information required from credit institutions on (commercial and residential) real estate loans. Circular 2/2020 also incorporates the latest developments in IFRS and other standards adopted or approved by EU, simplifies certain reporting requirements for credit institutions, and updates the information required in the different financial statements.

     

    Related Links (in English and Spanish)

    Effective Date: Official Gazette+1 Day

    Keywords: Europe, Spain, Banking, COVID-19, Credit Risk, Reporting, NPL, Forborne Exposures, Expected Credit Loss, IFRS 9, IFRS 16, Leases, EBA, ECB, ESRB, EC, BDE

    Featured Experts
    Related Articles
    News

    PRA and FPC Finalize Changes to Leverage Ratio Framework in UK

    The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA

    October 08, 2021 WebPage Regulatory News
    News

    CFPB Proposes Rule on Small Business Lending Data Collection

    The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.

    October 08, 2021 WebPage Regulatory News
    News

    PRA Decides to Maintain O-SII Buffers for Another Year

    The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.

    October 08, 2021 WebPage Regulatory News
    News

    FSB Report Assesses Implementation of Recommendations on Stablecoins

    The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.

    October 07, 2021 WebPage Regulatory News
    News

    APRA Updates Loan Serviceability Expectations for Home Lending

    In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.

    October 06, 2021 WebPage Regulatory News
    News

    CPMI and IOSCO Consult on Guidance on Stablecoin Arrangements

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.

    October 06, 2021 WebPage Regulatory News
    News

    EBA and EIOPA Set Out Work Priorities for 2022

    The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.

    October 05, 2021 WebPage Regulatory News
    News

    MFSA Issues Reporting Updates and Guidance for Banks

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.

    October 05, 2021 WebPage Regulatory News
    News

    EC Publishes Decision on List of Equivalent Third Countries Under CRR

    The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).

    October 04, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write-Down and Conversion Powers

    EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.

    October 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7552