PRA published a statement to outline its approach to regulatory reporting and Pillar 3 disclosures for UK banks, building societies, designated investment firms, and credit unions. This is in response to COVID-19 and the EBA statement on supervisory reporting and Pillar 3 disclosures, which was published on March 31, 2020. PRA has considered the recommendations from EBA and will accept delayed submission for certain aspects of harmonized regulatory reporting, where the original remittance deadlines fall on or before May 31, 2020. PRA also published a notice providing guidance to firms on statistical reporting. Additionally, HM Treasury and PRA welcomed the announcement made by the Group of Central Bank Governors and Heads of Supervision (GHOS), which delays the implementation of the Basel 3.1 standards by one year.
PRA will accept up to one-month delay in submission related to COREP, FINREP, solvency, liquidity-stable funding, large exposures and concentration risk, leverage ratio, asset encumbrance, and resolution plan reporting (excluding liability structure). PRA highlighted that the remittance dates for the following information will not be delayed:
- Information on liquidity coverage ratio and on the Additional Liquidity Monitoring Metrics (ALMM)
- Information on institutions’ liability structure, including intra-group financial connections that is required as part of reporting for resolution planning purposes
PRA will accept delayed submission for the following aspects of PRA-owned regulatory reporting where the remittance deadlines contained in the PRA rulebook fall on or before May 31, 2020:
- Up to two months of delay in submissions of annual report and accounts
- Up to one-month delay in submission of memorandum items (PRA 108), sectoral information (FSA 015), quarterly returns for credit unions, ring-fenced bodies returns (RFB001 to RFB003), and forecast financial statements (PRA 104-107)
In the policy statement PS17/19, PRA introduced a revised Branch Return Template for the reporting of the first half of 2020 return. To ease the burden on firms at this time, PRA strongly encourages firms to submit branch return data for the first half of 2020 using the old version of the branch return template, instead of the new version of the branch return. To maintain the safety and soundness of authorized firms during this period, PRA may request the more frequent submission of particular reports and additional ad-hoc reporting on key prudential metrics. PRA will consider whether the actions in this announcement will be extended to reporting beyond that due by the end of May 2020 in due course. The statement highlights that PRA will be flexible in its expectations of firms’ publication timeline for Pillar 3 disclosures and understands that:
- For many firms there may be a lag time between the publication of financial statements and Pillar 3 disclosures.
- As the deadline for publication of firms’ financial statements has been delayed by up to two months, it follows that firms’ Pillar 3 disclosures, which are published at the same time or a reasonable amount of time after the financial statements, will also be delayed significantly compared to the usual publication date.
For quarterly, half-yearly, or annual disclosures that are normally expected on or before May 31, 2020, PRA will take a flexible approach to assessing the reasonableness of any delay to the publication of the Pillar 3 disclosure. Where firms reasonably anticipate that publication of their Pillar 3 reports will be delayed, PRA expects that firms will inform to supervisors and market participants about the delay, the reasons for such delay, and, to the extent possible, the estimated publication date.
Additionally, FCA issued a statement outlining its expectations on financial resilience for FCA solo-regulated firms. In the statement, FCA points out that, if a firm is concerned it will not be able to meet its capital requirements, or its debts as they fall due, the firm should contact its FCA supervisor with its plan for the immediate period ahead. Firms that are prudentially regulated by PRA should consider the requirements of PRA and discuss their concerns with them. Those firms should also keep FCA notified of any significant developments.
- Press Release on Reporting and Disclosures
- PRA Statement (PDF)
- Statistical Notice
- Joint PRA and HM Treasury Statement
- FCA Statement
Keywords: Europe, EU, UK, Banking, COVID-19, Reporting, Pillar 3, LCR, Resolution Planning, Disclosures, Branch Return Form, Basel 3.1, Statistical Notice, Statistics, COREP, FINREP, CRR, BRRD, BCBS, EBA, FCA, PRA
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.