Australia: Prudential Regulator publishes FAQs on loan repayment deferrals and residential mortgage lending

The Australian Prudential Regulation Authority has released a set of FAQs on its expectations for regulated deposit-taking institutions during the period of disruption due to COVID-19. The FAQs cover the regulatory capital approach for loan repayment deferrals. The page also clarifies APRA’s guidance for serviceability assessments in Prudential Practice Guide APG 223 – Residential Mortgage […]

The European Banking Authority proposes Framework for STS Synthetic Securitization

The European Banking Authority has published its proposal for developing a simple, transparent and standardized (STS) framework for synthetic securitization.  This proposal, which is limited to balance-sheet securitization, includes a list of criteria to be considered when labeling synthetic securitization as STS. Among the regulator’s proposed criteria are requirements on simplicity, standardization and transparency similar […]

Final Guidelines on Credit Risk Mitigation for Institutions applying the IRB approach with own estimates of LGDs

The European Banking Authority (EBA) has published its final Guidelines on credit risk mitigation (CRM) in the context of the advanced internal ratings-based (A-IRB) approach (Guidelines).  These Guidelines, which are part of the EBA’s regulatory review of the IRB approach, aim to eliminate the remaining significant differences in approaches in the area of CRM, which […]

UK Government’s Bounce Back Loans Scheme: Observations on Credit Risk Mitigation Eligibility and the Leverage Ratio Treatment

The Prudential Regulation Authority (PRA) has published its observations on the risk-weighted treatment of exposures under the Bounce Back Loan Scheme, particularly eligibility for recognition as unfunded credit risk mitigation under the Capital Requirements Regulation.  The PRA release also sets out a change to the UK leverage ratio framework. The regulator is offering a modification […]

Financial Stability Board: Consultation on guidance on assessing the adequacy of financial resources for CCP resolution

The Financial Stability Board is consulting on Guidance on financial resources to support CCP resolution and on the treatment of CCP equity in resolution (Guidance). Part I of the Guidance proposes five steps to guide supervisory authorities in assessing the adequacy of a central counterparty (CCP)’s financial resources and the potential financial stability implications of […]

COVID-19 Pandemic: Singapore provides Additional Financial Support for Individuals

The Monetary Authority of Singapore, the Association of Banks in Singapore, and the Finance Houses Association of Singapore have announced additional measures to support individuals facing financial difficulties due to the COVID-19 pandemic.  Based on the announcement, the measures will extend the scope of relief for individuals to other types of loan commitments, and allow […]

Canada: OSFI expectations on using Pillar II capital buffers during COVID-19 Pandemic

OSFI has announced that deposit-taking institutions can use their Pillar II capital buffers to absorb unexpected losses arising from the impact of the COVID-19 disruption. This flexibility, the regulator hopes, will assist financial institutions to continue supporting Canadians and Canada-based businesses through these extraordinary times. OSFI expects these institutions to concurrently consider the appropriateness of […]

Basel Committee reports on climate-related financial risk initiatives

The Basel Committee on Banking Supervision (Committee) has published a stocktake report on its members’ existing regulatory and supervisory initiatives on climate-related financial risks. Prepared by the Committee’s high-level Task Force on Climate-related Financial Risks (TFCR), the report suggests that the majority of Committee members are undertaking a number of regulatory and supervisory initiatives on […]