PRA issued a clarification on how firms should incorporate IFRS 9 into stress testing and capital planning, which are conducted out as part of their Internal Capital Adequacy Assessment Process (ICAAP) obligations from 2018. This is only applicable to firms to which CRD IV applies and to firms that apply any of IFRS, FRS 101, or FRS 102 and have opted to use IFRS 9 for their financial instruments, in relation to ICAAP based on accounts as at December 31, 2017 or a later date.
In due course, PRA intends to publish additional clarification for firms participating in the Concurrent Stress Testing. For ICAAP documents based on accounts as at December 31, 2017 or a later date, PRA expects the firms in scope to prepare their ICAAP on an IFRS 9 basis. IFRS 9, which was issued in July 2014, replaces IAS 39. Following its endorsement for use in the EU, IFRS 9 is effective for annual periods beginning on or after January 01, 2018. The most significant change for banks and building societies relates to the introduction of a forward-looking expected credit loss model.
Related Link: Notification
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
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.
HKMA, together with the Banking Sector Small and Medium-Size Enterprise (SME) Lending Coordination Mechanism, announced a ninety-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme.
The Advisory Scientific Committee of ESRB published a response, in the form of an Insights Paper, to the EBA proposals for reforms to the stress testing framework in EU.
MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.
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.
PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance.
EBA published the final draft implementing technical standards for disclosures and reporting on the minimum requirements for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) requirements in EU.
EBA published an erratum for the phase 2 of technical package on the reporting framework 2.10.
EC published the Implementing Regulation 2020/1145, which lays down technical information for calculation of technical provisions and basic own funds.