In a recently issued statement, PRA announced that it does not consider it necessary to extend, to UK credit institutions, the supervisory reporting elements of the EBA guidelines on reporting and disclosures for COVID-19 measures. Therefore, firms are not expected to prepare or transmit the reporting templates contained within the EBA guidelines to PRA. However, PRA is considering how the disclosure elements of the EBA guidelines are to be applied. The EBA guidelines, which were published on June 02, 2020, are aimed to address data gaps in supervisory reporting and disclosures associated with measures to address the COVID-19 crisis.
PRA considered the approach to the EBA guidelines in light of the FCA and PRA approach to payment deferrals and in light of the data that PRA is already collecting from UK credit institutions in relation to payment deferrals. PRA is considering how the disclosure elements of the EBA guidelines are to be applied in a manner reflecting the proportionality measures in the guidelines and the guidance in the letter from Sam Woods to UK deposit-takers on the IFRS 9 and capital requirements aspects of COVID-19-related payment deferrals. The letter was issued, on June 04, 2020, in response to the updated FCA guidance on retail mortgage payment deferrals. PRA plans to provide further details in due course.
Keywords: Europe, UK, Banking, COVID-19, Reporting, Disclosures, Basel, IFRS 9, Regulatory Capital, CRR, Loan Moratorium, Payment Deferrals, EBA, FCA, PRA
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