BDE has decided to maintain the countercyclical capital buffer (CCyB) rate applicable to credit exposures in Spain at 0% in the fourth quarter of 2020. To alleviate the impact of the COVID-19 shock, the provision of lending to the real economy by credit institutions is an essential component of the strategy. Consequently, BDE has decided to maintain the CCyB rate at the minimum level of 0%. BDE maintains its forward-looking stance of not increasing the CCyB rate over the coming quarters, at least until the main economic and financial effects arising from the COVID-19 crisis have dissipated.
In addition, the Executive Committee of BDE, at its meeting of October 02, 2020, has determined the existence of exceptional macroeconomic circumstances, referred to in an article of the Capital Requirements Regulation (CRR), which justify that the less significant Spanish credit institutions may exclude certain exposures to Eurosystem central banks from the total exposure (denominator) of the leverage ratio. In particular, these institutions may exclude coins and banknotes of legal tender in the jurisdiction of the central bank and assets that represent credits to the central bank, including reserves therein. Regarding the latter assets, the exclusion may only apply to exposures that ECB has identified as relevant for the transmission of monetary policy, in its Decision of September 16, 2020 (ECB/2020/44); this includes the deposits held in the deposit facility and the balances held in the reserve accounts, including those that cover the minimum reserve requirements. Less significant Spanish credit institutions may make use of this exclusion, from the report corresponding to the third quarter of 2020 until June 27, 2021.
Related Links (in Spanish)
Keywords: Europe, Spain, Banking, COVID-19, CCyB, CRR, Basel, Leverage Ratio, Regulatory Capital, Less Significant Institutions, ECB, BDE
Previous ArticlePRA Consults on Stressed VaR and RNIV Calculations Under Market Risk
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA published the annual report on asset encumbrance of banks in EU.
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
ECB published a letter from Andrea Enria, the Chair of the Supervisory Board of ECB, answering questions raised by the President of the Bundestag (the German federal parliament) on how ECB assesses the financial stability of the euro area in the context of the significant level of nonperforming loans.