BaFin has released new developments and important information about COVID-19 and its effects on the financial and banking system. In addition, BaFin published frequently asked questions regarding banking and securities supervision. The answers to FAQs provide clarifications on topics related to credit risk, governance, FINREP, IFRS 9, Capital Requirements Regulation/Directive (CRR 2/CRD 5), liquidity risk, and reporting system. For certain reports, in particular those based on the FinaRisikoV (ordinance for the submission of financial and risk-bearing capacity information according to the German Banking Act) and the million credit reporting system, BaFin and Deutsche Bundesbank will not take up late submissions from the banking authorities and will allow an additional modified submission method for master data reports for large and million credit reporting systems.
BaFin has adopted a large number of measures to increase the scope for lending and, if necessary, absorb losses. Against this background and in view of the high degree of uncertainty about future developments, BaFin recommends refraining from buying back shares and carefully weighing dividends, profits, and bonuses. BaFin also advises to apply the transition rules to the IFRS 9 accounting standard. In the case of corona-related payment delays, a "through the cycle" perspective should be taken, which also takes into account state measures to mitigate the economic consequences. The dialog with the accounting standard-setters on these issues will continue at the national and international levels.
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Keywords: Europe, Germany, Banking, Securities, COVID-19, Reporting, Credit Risk, IFRS 9, FAQ, FINREP, Governance, CRR2, CRD5, Liquidity Risk, Bundesbank, BaFin
BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.
BoE updated the known issues document for the statistical reporting Forms AS and FV.
FED announced individual capital requirements for 34 large banks and these requirements go into effect on October 01, 2020.
SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool.
BIS published an update on the G20 TechSprint Initiative, which was launched in April 2020 and aims to highlight the potential for technologies to resolve regulatory compliance (regtech) and supervisory (suptech) challenges.
OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.
EBA updated the report on the implementation of selected COVID-19 policies.
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.