MFSA Issues New Banking Rule for COVID-19 Reporting and Disclosures
MFSA published a Circular for credit institutions on the issuance of a new Banking Rule BR/23 on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis. The new Banking Rule BR/23 will come into force with immediate effect. This recent communication clarifies expectations for both significant and less significant institutions. MFSA also published the reporting templates and instructions for COVID-19 data.
The rule intends to implement the provisions and requirements introduced by EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis (EBA/GL/2020/07). Through such implementation, the rule introduces additional reporting and disclosure requirements for credit institutions with respect to mitigating measures introduced in Malta to combat the negative economic consequences of the COVID-19 pandemic. Pursuant to such measures, credit institutions are obliged to report information, in accordance with the formats specified in the rule, on:
- Exposures that are subject to payment moratoria in accordance with the Moratorium on Credit Facilities in Exceptional Circumstances Regulations, 2020 (L.N. 142 of 2020) and the Central Bank of Malta (CBM) Directive No. 18 on Moratoria on Credit Facilities in Exceptional Circumstances
- Exposures that are subject to other forbearance measures introduced in response to the COVID-19 crisis
- Newly originated exposures subject to the Malta Development Bank COVID-19 Guarantee Scheme
Annex 1 to the rule provides credit institutions with the reporting templates, which are to be populated for submission to MFSA, together with further information on the reporting requirements laid down in the rule, including submission guidance. Annex 2 to the rule provides credit institutions with the reporting instructions to be followed with regard to the reporting templates in Annex 1. Finally, Annex 3 to the rule provides the disclosure templates that credit institutions are required to use for the publication of such information. Credit institutions shall report such data on a monthly basis and in line with the specified reference and remittance periods: reference reporting on the last day of each month and remittance reporting 42 calendar days following each above-specified reporting reference date. For significant institutions, the first reference and remittance dates are as per the Joint Supervisory Team communication. For the less significant institutions and significant subsidiaries, first reference date is June 30, 2020 and the first remittance date is August 11, 2020
Information on exposures subject to the Moratorium on Credit Facilities in Exceptional Circumstances Regulations and the CBM Directive No. 18. and on newly originated exposures subject to the MDB COVID-19 Guarantee Scheme shall be disclosed by credit institutions bi-annually. MFSA may consider the exercise of the waivers laid down in paragraph 21 of the rule to ensure proportional application of the newly introduced reporting and disclosure requirements.
.
Related Links
Keywords: Europe, Malta, Banking, Reporting, Disclosures, COVID-19, Basel, Credit Risk, MFSA
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.

David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Related Articles
EBA Launches Stress Tests for Banks, Issues Other Updates
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
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.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
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.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
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.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
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.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
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.
CBIRC Revises Measures on Corporate Governance Supervision
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.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
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.