Featured Product

    ECB Clarifies AnaCredit Reporting of Loans Under COVID Relief Measures

    May 15, 2020

    ECB published one question and answer (Q&A) offering clarification on certain aspects of AnaCredit reporting in light of the regulatory developments during the COVID-19 crisis. ECB points out that loans covered by COVID-19 relief measures are subject to the same requirements as any other instrument that is reported to AnaCredit. Consequently, reporting agents should continue to comply with the existing requirements set out in the AnaCredit Regulation and take note of the clarifications provided in the AnaCredit Reporting Manual.

    Instruments that are reportable to AnaCredit may be the subject of COVID-19 relief measures. The most common measures include public guarantees and legislative and non-legislative (private) debt moratoria, although some types of measure may not exist in all countries. Other forms of support measure include the option for individual debtors to ask their credit institutions to reschedule payment obligations as a result of the COVID-19 crisis; restrictions imposed by governments on credit institutions’ ability to revoke credit lines during the COVID-19 pandemic; the automatic extension of certain protections in line with the postponement of loan repayments; subsidized loan programs; and loan programs with government guarantees covering some or all of the credit risk. While there is no specific guidance regarding the reporting of loans covered by COVID-19 relief measures, some of the measures applied to such loans do have an impact on data that are subject to AnaCredit reporting; therefore, ECB has provided additional guidance to facilitate consistent and harmonized reporting. The ECB clarifications seek to ensure the consistency and comparability of risk metrics across all reporting agents, since monitoring of the provision of credit and credit risk is especially important in the context of the current crisis. 

    With respect to the loans subject to debt moratoria, reporting agents need to think carefully about the data attributes that are affected by the application of a debt moratorium and should consistently follow the instructions for AnaCredit reporting. The ECB clarification outlines a number of considerations that are important with regard to the identification of renegotiated loans, forborne exposures, and loans in default. Moreover, ECB sets out that its clarifications should be interpreted keeping in mind that AnaCredit is aligned with the EBA implementing technical standards on the identification of forborne instruments and defaulted instruments and counterparties and the corresponding guidelines. With respect to the loans covered by public or government guarantees offered in response to the COVID-19 crisis, reporting agents should continue to fulfill the requirements set out in Sections 8 and 9 of Part II of the AnaCredit Reporting Manual in respect of the reporting of protection to AnaCredit. Thus, there are no special requirements in relation to loans covered by public guarantees. All public guarantees (that is, guarantees securing reportable loans) and collateral that are offered to reporting agents in response to the COVID-19 pandemic should be reported to AnaCredit as credit risk mitigants as soon as they are provided to the institution in question. The “date of original protection value” should be the date as of which the bank regards the protection as securing the loan.

     

    Related Links

    Keywords: Europe, EU, Banking, COVID-19, AnaCredit, Reporting, Loan Moratorium, Credit Risk, Forborne Exposures, Q&A, Loan Guarantee, ECB

    Featured Experts
    Related Articles

    PRA Publishes Q&A on Property Valuation Requirements Under CRR

    PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.

    May 29, 2020 WebPage Regulatory News
    News

    IOSCO Consults on Outsourcing Principles for Operational Resilience

    IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.

    May 28, 2020 WebPage Regulatory News
    News

    MAS Consortium to Develop AI Fairness Metrics for Credit Scoring

    MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.

    May 28, 2020 WebPage Regulatory News

    BoE Updates Definitions for BTL Data Collection

    BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.

    May 28, 2020 WebPage Regulatory News
    News

    FSI Examines Financial Stability Implications of Payment Deferrals

    FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.

    May 28, 2020 WebPage Regulatory News
    News

    PRA Finalizes Policy on Prudent Person Principle Under Solvency II

    PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.

    May 27, 2020 WebPage Regulatory News
    News

    EBA on Extending Large Exposure Limits for French Systemic Banks

    EBA published an opinion following the notification by the French macro-prudential authority, the Haut Conseil de Stabilité Financière (HCSF), of its intention to extend a measure introduced in 2018 on the use of Article 458(9) of the Capital Requirements Regulation (CRR).

    May 27, 2020 WebPage Regulatory News
    News

    ECB Highlights NPL Resolution as Key Policy Issue in Post-COVID Europe

    As part of a Research Bulletin on the recent policy-relevant work, ECB published an article that examines the lessons learned from past crises for nonperforming loan resolution in the post COVID-19 period.

    May 27, 2020 WebPage Regulatory News
    News

    RBNZ Publishes Financial Stability Report for May 2020

    RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.

    May 27, 2020 WebPage Regulatory News
    News

    ECB Updates Guidance on Reporting of Securities Holdings Statistics

    ECB updated the guidance notes for reporting related to the statistics on holdings of securities by reporting banking groups (SHSG).

    May 26, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5231