Featured Product

    BNB Extends Loan Moratorium, Maintains CCyB at 0.5% Amid Crisis

    July 14, 2020

    BNB announced that it has approved a request of the Association of Banks in Bulgaria to extend the moratorium on payments amid the COVID-19 crisis. Recently, BNB had also announced its decision to comply with the EBA guidelines on reporting and disclosures of exposures subject to measures implemented in response to the COVID-19 crisis. Another announcement from BNB, in the context of the ongoing challenges, is its decision to maintain the countercyclical capital buffer (CCyB) applicable to credit risk exposures in the Republic of Bulgaria to 0.5% for the third quarter of 2020. Given the expected slowdown in economic activity and the associated increase in non-performing loans, which would put pressure on the profitability and capital position of credit institutions, maintaining the CCyB at 0.5% in the third quarter of 2020 will contribute to the sustainability of banking system, according to BNB. The BNB Governing Council will decide on the level of CCyB buffer applicable for the fourth quarter of 2020 in September 2020.

    On July 09, 2020, the Governing Council of BNB had decided to comply with the EBA guidelines (GL/2020/08) on legislative and private moratoria on credit payments applied in context of the COVID-19 crisis. These guidelines, which amend the earlier EBA guidelines (GL/2020/02) on this, extend by three months, from June 30, 2020 to September 30, 2020, the deadline for the application of moratorium on payments. In line with this, BNB has approved an extension of the term for submission of a request by clients of the banks for deferral of liabilities and their approval by the banks until September 30, 2020. BNB also extended the deadline for deferral of liabilities of bank customers until March 31, 2021. The extension of the deferral procedure applies to exposures for which no request for deferral of payments has been submitted before June 22, 2020. 

    In addition, BNB will start publishing monthly aggregated information in connection with the received and approved requests to banks for deferral of liabilities. Information for April, May, and June 2020 will be published on July 31, 2020. For the following months of the approved order, monthly information will be published at the end of the last working day of the month following the reporting period. As reporting and disclosure requirements are in the context of the COVID-19 pandemic, they are expected to be limited in time. The expected period for their application is 18 months.

     

    Related Links (in Bulgarian)

    Keywords: Europe, EU, Bulgaria, Banking, CCyB, Basel, COVID-19, Reporting, Credit Risk, Regulatory Capital, Loan Moratorium, EBA, BNB

    Featured Experts
    Related Articles
    News

    BCBS Consults on Guidelines for Counterparty Credit Risk Management

    The Basel Committee on Banking Supervision (BCBS) is seeking comments, until August 28, 2024, on guidelines for counterparty credit risk management of banks.

    May 21, 2024 WebPage Regulatory News
    News

    ISSB Releases Digital Sustainability Disclosures Taxonomy

    The themes of the harmonization and interoperability of sustainability disclosure standards among various jurisdictions remain at the top-of-mind for international standard-setting bodies.

    May 21, 2024 WebPage Regulatory News
    News

    BCBS Report Studies Implications of Digitalization of Finance

    The Basel Committee on Banking Supervision (BCBS) published a report that examines the implications of the digitalization of finance for banks and supervisors.

    May 21, 2024 WebPage Regulatory News
    News

    HKMA Publishes Hong Kong Taxonomy for Sustainable Finance

    The Hong Kong Monetary Authority (HKMA) published the Hong Kong Taxonomy for Sustainable Finance.

    May 21, 2024 WebPage Regulatory News
    News

    EU Taking Steps to Set Out and Enforce AI Regulations

    Many believe that the transformative power of generative artificial intelligence (GenAI) has potential to reshape the financial sector in the time to come.

    May 21, 2024 WebPage Regulatory News
    News

    BIS Paper Outlines Vision for Future Financial System

    In a recent paper, the General Manager of Bank for International Settlements (BIS) and the Indian entrepreneur (Infosys co-founder) Nandan Nilekani have laid out a vision for the Finternet, which is proposed to be a network of multiple financial ecosystems, much like the internet.

    April 29, 2024 WebPage Regulatory News
    News

    NGFS Outlines Options for Supervisory Review of Transition Plans

    The Network for Greening the Financial System (NGFS) recently published three reports on the use of transition plans to boost sustainable finance and manage climate-related financial risks.

    April 29, 2024 WebPage Regulatory News
    News

    BCBS Issues Discussion Paper on Climate Scenario Analysis

    The Basel Committee on Banking Supervision (BCBS) issued a discussion paper on the use of climate scenario analysis to strengthen the management and supervision of climate-related financial risks.

    April 29, 2024 WebPage Regulatory News
    News

    OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.

    April 25, 2024 WebPage Regulatory News
    News

    CFIT to Chair Open Finance Taskforce Announced by UK Government

    The UK government announced the formation of an industry-led Open Finance Taskforce, chaired by the Center for Finance, Innovation, and Technology (CFIT).

    April 25, 2024 WebPage Regulatory News
    RESULTS 1 - 10 OF 8967