Featured Product

    NBB Issues Reporting and Accounting Guidance to Ease COVID-19 Impact

    April 14, 2020

    NBB announced certain measures to address the impact of COVID-19 pandemic. The key measures relate to reducing reporting burden on institutions, provisioning of expected credit loss provisioning under IFRS 9, and prevention of money laundering and the financing of terrorism (AML/CFT). NBB is informing the financial institutions that fall under its relevant supervisory powers about its decision to extend, to August 31, 2020, the deadline for communicating the 2019 annual activity report of Money Laundering and Terrorist Financing Prevention Officer and for replying to the 2020 periodic questionnaire on AML/CFT.

    Earlier, ECB had provided guidance on the use of forecast to avoid excessively procyclical assumptions in the expected credit loss (ECL) estimations during the COVID-19 pandemic. NBB considers that this guidance is also relevant for the less significant institutions that draw up consolidated accounts on the basis of IFRS accounting standards and are faced with the same problems. NBB, therefore, expects these institutions to take the ECB recommendations into account in the assessment and provisioning of their expected credit losses. Additionally, NBB announced the following key decisions in accordance with the recent statements from EU authorities on reducing the reporting burden on institutions:

    • NBB decided to grant the less significant institutions an additional month to provide it with the reports required at the European level (including the ECB-specific reports, such as the FINREP solo reports, which were to be submitted between March and May 2020. This extension does not apply to the reporting in relation to the Liquidity Coverage Ratio (LCR) and the Additional Liquidity Monitoring Metrics (ALMM).
    • In respect to resolution reporting, for less significant institutions that do not conduct cross-border activities and for stockbroking firms falling under the remit of NBB, one-month extension of the reporting deadline—that is, until May 31, 2020—will be granted if requested by the institution.
    • Where appropriate, an extension can be granted for the Commission Implementing Regulation 2018/1624 templates, the Critical Function Report (CFR), and the Financial Market Infrastructures Report (FMIR).
    • In accordance with the EBA Communication, no extension can be granted for tables containing information on the liability structure. For the Liability Data Report (LDR), Additional Liability Report (ALR), and certain other tables (Z 02.00 Liability Structure, Z 03.00 Own funds requirements, Z 04.00 Intragroup financial connectedness, and Z 05.02 Major counterparties), the deadline of April 30 remains in place. 
    • For national reporting between March 2020 and May 2020, NBB decided to grant institutions one additional month to comply with certain reporting requirements. These requirements involve national quantitative prudential reports (including reporting on interest rate risk arising from non-trading activities) and various national qualitative prudential reports (except those specifically intended for AML), unless expressly stated otherwise to individual institutions by NBB.

    In the future, NBB will, in accordance with a potential decision by EBA and ECB, make a decision regarding the deadlines of reports to be submitted from June 2020. 

     

    Related Links

    Keywords: Europe, Belgium, Banking, COVID-19, Reporting, Less Significant Institutions, IFRS 9, Credit Risk, AML/CFT, Liquidity Risk, Expected Credit Loss, FINREP, Resolution Reporting, NBB

    Featured Experts
    Related Articles
    News

    EC Rule on Contractual Recognition of Write Down and Conversion Powers

    The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.

    September 17, 2021 WebPage Regulatory News
    News

    APRA Issues Further Guidance on Application of Securitization Standard

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.

    September 16, 2021 WebPage Regulatory News
    News

    SRB Provides Update on Approach to Prior Permissions Regime

    The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.

    September 16, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Finalizes Guidance to Assess Breaches of Large Exposure Limits

    The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.

    September 15, 2021 WebPage Regulatory News
    News

    PRA Finalizes Changes to Consolidated Prudential Rules Under CRD5/CRR2

    The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Revises Guidelines on Stress Tests of Deposit Guarantee Schemes

    The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).

    September 15, 2021 WebPage Regulatory News
    News

    Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics

    The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.

    September 15, 2021 WebPage Regulatory News
    News

    HKMA Endorses Industry Guidance to Support LIBOR Transition

    The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).

    September 14, 2021 WebPage Regulatory News
    News

    OCC Issues Booklet on Supervision of Problem Banks

    The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.

    September 13, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7481