PRA published a statement that provides updated guidance to UK banks and building societies (also referred to as firms) on the disclosure of exposures subject to measures applied in response to the COVID-19 crisis. The statement highlights that firms should continue to use the templates published in July 2020 for semi-annual disclosure reference dates up to, and including, December 31, 2021. Firms may continue to disclose on a semi-annual basis, as at June 30, 2021 and December 31, 2021. Firms may also disclose at the half-year and year-end dates for their financial year, if they have an accounting reference date other than December 31, 2021.
In July 2020, PRA had clarified that it expects certain firms to make disclosures on COVID-19 lending for the highest level of consolidation in the UK for semi-annual disclosure periods ending on dates up to, and including, December 31, 2020. Firms that should make these disclosures are, or are controlled by, global systemically important institutions (G-SIIs) or other systemically important institutions (O-SIIs) designated by PRA in the most recent list and those that have retail deposits equal to or greater than GBP 50 billion on an individual or consolidated basis. PRA noted in that statement that it would keep the approach for disclosure periods after this date under review. Given the continued use of COVID-19 support measures in lending by UK firms, PRA continues to see substantial benefit to its objectives in the disclosure of information on the effects of the measures that UK firms have taken in response to the COVID-19 crisis.
Keywords: Europe, UK, Banking, COVID-19, Credit Risk, Disclosures, CRR, Basel, Loan Moratorium, Payment Deferrals, Reporting, PRA
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
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