EBA assesses impact of Covid-19 on EU banks
The European Banking Authority (EBA) has published a preliminary assessment of the impact of COVID-19 on the EU banking sector. It highlights that before the health crisis hit, banks had strong capital and liquidity buffers and as such have managed the pressure on operational capacities, activating their contingency plans. It expects the crisis to affect asset quality and the profitability of banks going forward, but also notes that the capital accumulated by banks during the past years along with the capital relief provided by regulators should allow banks to withstand potential credit risk losses.
Amendments to CRR on the horizon
The EU Parliament’s Economic and Monetary Affairs (ECON) Committee has published its draft report on suggested amendments to the Capital Requirements Regulation (CRR) in response to the COVID-19 pandemic, as proposed by the EU commission.
GFiN releases new COVID-19 webpage
The Global Financial Innovation Network (GFiN) published a new webpage on its COVID-19 response. GFiN is keen to hear from and support firms that have developed or are developing financial products or services that specifically help people and the financial services they rely on deal with the effects of the COVID-19 outbreak. This may include FinTech proposals to help consumers cope with the impact or RegTech/SupTech tools to support firms or regulators with reporting or supervision needs. The page also provides a list of support with innovation activities by jurisdiction.
CPD hours can be carried over, says FCA
The FCA has confirmed that, during COVID-19, it will temporarily allow firms to let individuals in exceptional circumstances carry over any uncompleted Continuing Professional Development (CPD) hours to the next CPD year. This applies to CPD years ending before 1 April 2021. The FCA also provides further detail on when firms may do this, what circumstance may be considered as ‘exceptional’, and other factors firms that will need to take into account.
PRA answer questions on property valuation requirements
The PRA published a Questions and Answers (Q&As) document on the requirements in the Capital Requirements Regulation (CRR) for property valuations for residential and commercial real estate exposures. The document responds to queries raised by firms around difficulties in: conducting physical inspections due to social distancing measures, obtaining reliable property valuations and use of house price indices.
IOSCO on the importance of disclosures
The International Organization of Securities Commissions (IOSCO) published a statement highlighting the importance of timely and high-quality information about the impact of COVID-19 on issuers´ operating performance, financial position and prospects. IOSCO further reiterates its commitment to the development, consistent application and enforcement of high-quality reporting standards and disclosure regulations, which it argues are critical to the functioning of capital markets during COVID-19.