Featured Product

    APRA Further Extends Support for Borrowers Impacted by COVID-19

    July 19, 2021

    The Australian Prudential Regulation Authority (APRA) is further extending support for loan repayment deferrals amid pandemic. This announcement largely mirrors the temporary support measures APRA had announced in March 2020. which ended on March 31, 2021. APRA plans to release an updated prudential standard in July 2021 to formalize this new treatment, in line with the approach taken in 2020. This treatment will be formalized as part of the Attachment E (COVID-19 Adjustments) to APS 220, the prudential standard on credit quality, and ARS 923.2, the reporting standard on repayment deferrals.

    A number of authorized deposit-taking institutions have announced COVID-19 support packages that will provide the affected small business and home loan customers with an option to defer their loan repayments. In response, APRA is providing regulatory relief to assist authorized deposit-taking institutions in supporting their customers through this period. Eligible borrowers include where the authorized deposit-taking institution reasonably believes that the borrower’s ability to repay according to the original loan terms has been, or is likely to be, affected by the COVID-19 pandemic and the loan was not 90 days past-due or impaired at the time a repayment deferral or restructure was provided to the borrower. For eligible borrowers, authorized deposit-taking institutions will not need to treat the period of deferral as a period of arrears or a loan restructuring. This will apply to loans that are granted a repayment deferral of up to three months before the end of August 2021. This will provide banks and borrowers with additional flexibility to manage the period ahead. The measures apply regardless of whether or not the borrower has previously been granted a repayment deferral due to the impact of the pandemic. For transparency, APRA will require authorized deposit-taking institutions to publicly disclose and report the nature and terms of any repayment deferrals and the volume of loans. Nonetheless, authorized deposit-taking institutions must continue to provision for these loans under the relevant accounting standards. 

     

    Related Link: Press Release

     

    Keywords: Asia Pacific, Australia, Banking, COVID-19, Credit Risk, Loan Moratorium, Payment Deferrals, APS 220, ARS 923.2, Lending, APRA

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8280