FIN.

EBA clarified COVID-19 prudential measures

EBA has published a report clarifying how certain parts of prudential regulation apply in the light of COVID-19. It says several issues have been drawn to its attention in relation to the effects of payment moratoria and more broadly. The guidance looks at interpretation of certain measures and COVID-19 issues more generally, in particular:

  • the COVID-19 operational risk classification scheme
  • impact on business continuity
  • impact on institutions’ ordinary course of business
  • impact on loss events
  • impact on credit risk and potential consequences on operational risk and
  • impact of implementing novel legislation because of COVID-19

Emma Radmore