FINMA Issues Further Guidance for Banks in Context of COVID-19 Crisis
FINMA published Guidance 03/2020, which provides information about exemptions and clarifications related to supervisory practices in the context of the COVID-19 crisis. With this guidance, FINMA is communicating further measures for supervised entities as well as provided certain clarifications to the banking sector. These clarifications relate to the leverage ratio relief, dividend distribution, accounting treatment of COVID-19 loans, and treatment of COVID-19 loans in the interest rate risk report.
The guidance also states that if, due to the COVID 19 pandemic, insurance companies, insurance groups, and conglomerates are not able to submit or publish certain reports in due time this year, the submission period will be extended, until May 31, 2020, on notification to FINMA. The notification must be made to FINMA before April 30, 2020. FINMA is willing to approve requests from insurance companies for a temporary smoothing of the yield curves for various currencies, to reduce daily fluctuations of the Swiss Solvency Test. In addition, FINMA is granting the insurance companies more time to submit their supervisory reporting to FINMA.
Related Links
- Press Release
- Guideline 03/2020 (PDF in German)
Keywords: Europe, Switzerland, Banking, Insurance, Accounting, COVID-19, Reporting, Dividend Distribution, Interest Rate Risk, Leverage Ratio, Credit Risk, FINMA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
FCA Publishes Business Plan for 2020-21Next Article
MAS Amends Notices on Residential Property LoansRelated Articles
EC Delegated Regulation on Specialized Lending Exposures Under CRR
EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.
OSFI Consults on Minimum Qualifying Rate for Uninsured Mortgages
OSFI is proposing new minimum qualifying rate for uninsured mortgages under the Guideline B-20.
ECB Updates List of Supervised Entities in EU in April 2021
ECB updated the list of supervised entities in EU, with the number of significant supervised entities amounting to 115 as of the March 01, 2021 cut-off date.
OSFI Issues Letter on ICAAP Submission and Internal Audit of BCAR
OSFI issued a letter to confirm that a formal Internal Capital Adequacy Assessment Process (ICAAP) submission is not required in 2021.
EC Agrees to Prolong Scheme to Support NPL Reduction at Greek Banks
EC has approved the prolongation of an existing Greek scheme aiming to support the reduction of nonperforming loans, or NPLs, of Greek banks on the basis that it remains free of any State aid.
EIOPA Study Examines Internal Model Market and Credit Risks Under SII
EIOPA published a report presenting the results of its yearly study on the internal modeling of market and credit risks under the Solvency II Directive, also known as SII.
ESMA Issues Notification Templates for STS Synthetic Securitizations
ESMA published the interim simple, transparent, and standardized (STS) notification templates for synthetic securitizations, post the recent amendments to the Securitization Regulation.
EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
EBA Updates Lists of Entities for Use in Capital Calculations under SA
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
FED Proposes to Automate Bank Stock Adjustment Using Call Report Data
FED published a proposal to automate non-merger-related adjustments to member banks' subscriptions to Federal Reserve Bank capital stock.
