In a recently issued statement, PRA announced that it does not consider it necessary to extend, to UK credit institutions, the supervisory reporting elements of the EBA guidelines on reporting and disclosures for COVID-19 measures. Therefore, firms are not expected to prepare or transmit the reporting templates contained within the EBA guidelines to PRA. However, PRA is considering how the disclosure elements of the EBA guidelines are to be applied. The EBA guidelines, which were published on June 02, 2020, are aimed to address data gaps in supervisory reporting and disclosures associated with measures to address the COVID-19 crisis.
PRA considered the approach to the EBA guidelines in light of the FCA and PRA approach to payment deferrals and in light of the data that PRA is already collecting from UK credit institutions in relation to payment deferrals. PRA is considering how the disclosure elements of the EBA guidelines are to be applied in a manner reflecting the proportionality measures in the guidelines and the guidance in the letter from Sam Woods to UK deposit-takers on the IFRS 9 and capital requirements aspects of COVID-19-related payment deferrals. The letter was issued, on June 04, 2020, in response to the updated FCA guidance on retail mortgage payment deferrals. PRA plans to provide further details in due course.
Keywords: Europe, UK, Banking, COVID-19, Reporting, Disclosures, Basel, IFRS 9, Regulatory Capital, CRR, Loan Moratorium, Payment Deferrals, EBA, FCA, PRA
Previous ArticleNGFS Publishes First Set of Scenarios for Climate Risk Assessment
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.
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
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.
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.
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
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.
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
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.
The Bank for International Settlements (BIS) published bulletins on lending in decentralized finance (DeFi) system, on blockchain scalability and fragmentation of crypto, and on extractable value and market manipulation in crypto and decentralized finance.
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.