PRA issued a clarification on how firms should incorporate IFRS 9 into stress testing and capital planning, which are conducted out as part of their Internal Capital Adequacy Assessment Process (ICAAP) obligations from 2018. This is only applicable to firms to which CRD IV applies and to firms that apply any of IFRS, FRS 101, or FRS 102 and have opted to use IFRS 9 for their financial instruments, in relation to ICAAP based on accounts as at December 31, 2017 or a later date.
In due course, PRA intends to publish additional clarification for firms participating in the Concurrent Stress Testing. For ICAAP documents based on accounts as at December 31, 2017 or a later date, PRA expects the firms in scope to prepare their ICAAP on an IFRS 9 basis. IFRS 9, which was issued in July 2014, replaces IAS 39. Following its endorsement for use in the EU, IFRS 9 is effective for annual periods beginning on or after January 01, 2018. The most significant change for banks and building societies relates to the introduction of a forward-looking expected credit loss model.
Related Link: Notification
APRA issued a letter to authorized deposit-taking institutions announcing its intent to formalize the capital measures and reporting requirements for COVID-19 loans through temporary legislative instruments.
EBA is inviting relevant stakeholders, such as financial institutions and information and communication technology (ICT) third-party providers, to share their views and experience on the use of regtech solutions through its regtech industry survey.
FCA finalized the guidance extending measures to help customers that hold insurance and premium finance products and are in temporary financial difficulty because of COVID-19 crisis.
BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.
FASB announced the launch of its new Post-Implementation Review (PIR) web portal.
EBA revised the draft implementing technical standards on supervisory reporting as part of the reporting framework 3.0.
ECB published report that presents a summary of the analysis conducted on the internal capital adequacy assessment process (ICAAP) practices of a sample of 37 "significant" banks.
EC published a proposal for a regulation that amends the Benchmarks Regulation (2016/1011) regarding the exemption of certain third-country foreign-exchange benchmarks and the designation of replacement benchmarks for certain benchmarks in cessation.
PRA published a letter from Mel Beaman, the Director for UK Deposit Takers, to suspend the relevant guidance levels on fixed rate lending limits in the “Specialist Sourcebook” for an initial period of six months, running from August 01, 2020 to January 31, 2021.
BoE updated the known issues document for the statistical reporting Forms AS and FV.