Prudential Regulatory Measures1 in Response to COVID-19 (as of November 22, 2021)
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Prudential Regulatory Measures1 in Response to COVID-19 (as of November 22, 2021)
* indicates no recent updates
Provisioning, Definition of
Consultations/ Other (reporting, stress
Jurisdiction Capital Liquidity Default and NPL-related
Implementation Timetables testing, conduct, etc.)
measures
FSB 2020 2020 * 2020 2020
March 20: FSB encouraged local March 20: FSB encouraged use of April 2: FSB issued a statement April 1: The G20 Finance Ministers
authorities to support use of liquidity buffers to support clients summarizing its coordination and Central Bank Governors
capital buffers by banks to extend and ensure functioning of activities, its work on assessing published a release following their
credit. The FSB also announced markets. financial vulnerabilities and virtual meeting on March 31
coordination efforts among July 15: FSB supported the BCBS setting out its re-prioritized 2020 setting out a range of measures
authorities. statement on buffer usage and work program and the criteria including working with the FSB in
July 15: FSB supported the BCBS announced that supervisors have under which this prioritization is coordination of regulatory policy
statement on buffer usage and agreed that banks will be given being determined. responses.
announced that supervisors have sufficient time to restore buffers, September 7: FSB extended the April 11: FSB issued a letter to
agreed that banks will be given taking into account economic and implementation dates by one year G20 finance ministers and central
sufficient time to restore buffers, market conditions and for its policy recommendations bank governors on its vision for
taking into account economic and individual bank circumstances. related to minimum haircut post-COVID-19 recovery, including
market conditions and standards for non-centrally evaluating the effects of reforms
individual bank circumstances. cleared securities financing and facilitating a smooth
transactions. transition from LIBOR.
April 15: FSB published a report
summarizing the principles
guiding its COVID-19 work, the
key response measures taken to
date, financial stability
implications and future work.
1
This document captures prudential, securities and related regulatory measures adopted internationally. It does not capture fiscal, monetary and related measures. For access to an IIF compilation of
such measures please follow this link: https://www.iif.com/covid-19 and then navigate to the “COVID-19 Global Policy Response Summary.”
iif.com © Copyright 2020. The Institute of International Finance, Inc. All rights reserved. Page 1Provisioning, Definition of
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Jurisdiction Capital Liquidity Default and NPL-related
Implementation Timetables testing, conduct, etc.)
measures
April 15: G20 Finance Ministers
and Central Bank Governors
published a communique in which
they committed to use their
power to support the economy
during COVID-19 and stated their
support of the financial measures
countries have taken in response
to the pandemic.
May 26: FSB, in cooperation with
BCBS, CPMI, IAIS and IOSCO held a
meeting with public and private
participants and discussed the
effectiveness of prudential and
other financial policy measures
taken to date, including
experiences with their
implementation. They also
discussed policy issues going
forward.
July 1: FSB released a statement
on the impact of COVID-19 on
global benchmark reform.
July 15: FSB published a letter
from the Chair and a report to
G20 Finance Ministers and
Governors on the financial
stability implications of, and
policy measures taken in response
to, the COVID-19 pandemic.
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measures
November 17: FSB published a
letter from its chair and two
reports to G20 Leaders on the
holistic review of the March
market turmoil and the financial
stability impact and policy
responses to COVID-19.
2021
January 20: FSB published its
work program for 2021, reflecting
strategic shift in priorities in the
COVID-19 environment.
February 25: FSB issued a letter to
G20 finance ministers and central
bank governors including its plans
to address COVID-19 related
vulnerabilities.
April 6: FSB published a letter
from the Chair and a report to
G20 Finance Ministers and
Governors on COVID-19 support
measures.
July 13: FSB published its Interim
Report on the Lessons Learnt
from the COVID-19 Pandemic
from a Financial Stability
Perspective.
iif.com © Copyright 2020. The Institute of International Finance, Inc. All rights reserved. Page 3Provisioning, Definition of
Consultations/ Other (reporting, stress
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Implementation Timetables testing, conduct, etc.)
measures
BCBS 2020 2020 2020 2020 2020
March 20: BCBS announced its March 20: BCBS supported use of April 3: BCBS published guidelines March 20: BCBS said it April 8: BCBS will not collect Basel
support for use of capital buffers liquidity buffers and encouraged on including the risk-reducing temporarily suspended all open III monitoring data for the end-
by banks to accommodate credit the use of HQLA stocks. effect of measures banks have consultations and postponed June 2020 reporting date to
and absorb losses during the June 17: BCBS discussed the taken in response to COVID-19 jurisdictional assessments for increase operational capacity for
crisis. impact of COVID-19 and when calculating regulatory remainder of 2020. banks.
June 17: BCBS discussed the reiterated guidance on liquidity capital requirements. March 27: BCBS announced the September 25: BCBS approved an
impact of COVID-19 and buffers. They also stated that Additionally, BCBS will amend its deferral of the Basel III updated workplan to evaluate its
reiterated guidance on capital supervisors will provide banks transitional arrangements for the implementation deadline by one post-crisis reforms, which will
buffers. They also stated that sufficient time to restore buffers, regulatory capital treatment of year to January 1, 2023. The incorporate lessons learned from
supervisors will provide banks taking into account economic and ECL accounting. deadlines for the revised market the COVID-19 crisis.
sufficient time to restore buffers, market conditions and individual risk framework and revised Pillar November 30: BCBS committed to
taking into account economic and bank circumstances. 3 disclosure requirements have continue pursuing a coordinated
market conditions and individual September 25: BCBS reiterated its also been pushed to January 1, approach in response to the
bank circumstances. previous guidance to make use of 2023. COVID-19 crisis, including
September 25: BCBS reiterated its the Basel III capital and liquidity April 3: BCBS will defer the monitoring risks and encouraging
previous guidance to make use of buffers. implementation of the revised G- the use of flexibility in the
the Basel III capital and liquidity SIB framework by one year, from regulatory framework.
buffers. 2021 2021 to 2022.
June 7: BCBS reiterated its April 3: BCBS and IOSCO have 2021
2021 guidance that banks should make agreed to extend the deadline for April 16: BCBS published its work
June 7: BCBS reiterated its use of Basel III capital and completing the final two programme for 2021-22, including
guidance that banks should make liquidity buffers to absorb shocks implementation phases of the ongoing Covid-19 initiatives.
use of Basel III capital and and maintain lending to margin requirements for non- July 6: BCBS published a
liquidity buffers to absorb shocks creditworthy households and centrally cleared derivatives, by preliminary assessment of the
and maintain lending to businesses. one year to September 1, 2022. impact of implemented Basel
creditworthy households and reforms during the pandemic.
businesses.
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IOSCO * * 2020 2020 2020
April 3: IOSCO supported April 3: IOSCO and BCBS have March 25: IOSCO announced
professional judgment in applying agreed to extend the deadline for coordination activities with other
accounting standards rather than completing the final two standard setters and support for
applying in a mechanistic manner. implementation phases of the actions designed to maintain
margin requirements for non- market efficiency, liquidity and
centrally cleared derivatives, by access. Particular focus on
one year to September 1, 2022. operational and financial
April 8: IOSCO has reprioritized its resilience of FMIs and information
work program to focus on the flows.
direct effects of COVID-19 on May 29: IOSCO issued a
market-based finance. statement on the importance of
disclosures concerning COVID-19
related impacts.
IASB * * 2020 2020 *
March 27: IASB released a March 27: IASB said the release of
statement clarifying how to apply several amendments to IFRS
IFRS 9 during this time of standards will be delayed until
uncertainty. The Board also states May 2020, though IBOR reform
that it is working with regulators work and amendments to IFRS 17
in the current environment and will proceed as planned.
encourages companies to April 10: IASB is considering
consider guidance provided by whether to propose a deferral by
prudential and securities one year of IFRS Standards,
regulators. extending ongoing consultation
April 17: IASB decided to propose periods, and delaying publication
an amendment to the leases of new consultations.
Standard, IFRS 16, to help April 17: IASB decided to propose
companies account for covid-19- extending by one year the
effective date of an amendment
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Implementation Timetables testing, conduct, etc.)
measures
related rent concessions, such as to IAS 1, extend three month of
rent holidays. consultation period for three
consultations, and defer several
consultations for a year.
July 15: IASB deferred by one year
the effective date of Classification
of Liabilities as Current or Non-
current within IAS1.
FATF * * * 2020 2020
April 28: FATF extended deadlines April 1: FATF released a
for mutual evaluations and statement on the efforts it has
follow-ups. taken in response to COVID-19.
May 4: FATF released a paper on
AML/CFT risks during the COVID-
19 pandemic, along with
recommended policy actions, and
a listing of policy measures
various jurisdictions have taken in
response to the threat.
December 20: FATF published an
update on their report, COVID-19
Related Money Laundering and
Terrorist Financing Risks, that
highlight the latest regulatory
developments.
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European 2020 2020 2020 2020 2020
Union March 12: ECB said banks can March 12: ECB advised it would March 20: ECB exercised flexibility March 12: EBA said EU stress- March 16: ESMA temporarily
fully use capital buffers and that allow banks to operate regarding the classification of tests have been postponed to lowered the reporting threshold
banks will benefit from relief in temporarily below the liquidity debtors as “unlikely to pay” on 2021. In 2020, the EBA will for holders of net short positions
the composition of capital for coverage ratio. public guarantees granted. instead carry out an additional in shares traded on an EU
Pillar 2 Requirements. Banks are July 28: ECB committed to allow March 20: ECB recommended EU-wide transparency exercise. regulated market.
also expected not to increase banks to operate below the LCR that all banks avoid procyclical March 20: ESMA extended all March 19: ESMA set out an
capital distributions in response until at least end-2021, without assumptions in their models to consultation deadlines for four approach to the Securities
to these measures. automatically triggering determine provisions. weeks. Finance Transactions Regulation.
March 27: ECB asks banks not to supervisory actions. March 25: EBA released a March 25: EBA said the deadlines March 20: ESMA clarified its
pay dividends for 2019 or 2020 statement on the application of of ongoing public consultations position on call taping under
until at least October 1, 2020. the prudential framework with will be extended by two months MIFID II.
Banks should also refrain from regards to classification of default, and public hearings will be March 27: ESMA recommended
share buy-backs aimed at forbearance, and IFRS 9. postponed. that Member State authorities
remunerating shareholders. March 25: ESMA issued guidance March 31: EBA provides details on accept delayed financial reports
March 31: EBA reiterated and on accounting principles, its call for leeway on reporting from issuers.
expanded its call to institutions to including moratoria on repayment dates, urging one-month flexibility March 31: ESMA encouraged
refrain from the distribution of of loans and the calculation of for reports with remittance dates national competent authorities
dividends or share buybacks for expected credit losses in between March and the end of not to prioritize supervisory
the purpose of remunerating accordance with IFRS 9. May 2020. EBA also called for action against execution venues
shareholders and assess their April 2: EBA issued guidelines on flexibility in assessing deadlines of and firms in respect of the
remuneration policies in line with the requirements of public and institutions’ Pillar 3 disclosures. deadlines of the general best
the risks stemming from the private moratoria given COVID-19. Also the EBA, in coordination with execution reports under MiFID II.
economic situation. April 22: EBA provided further the BCBS, has decided to cancel March 31: EBA, in coordination
April 1: SRB has published clarity on the prudential the Quantitative Impact Study with the BCBS, has decided to
commentary by its Chair which application of the definition of (QIS) based on June 2020 data. cancel the Quantitative Impact
acknowledges capital relief default and forbearance as well as April 6: European Commission Study (QIS) based on June 2020
measures undertaken by how the EBA Guidelines on extended deadlines for data.
Authorities in the region and legislative and non-legislative responding to its four 2020 April 1: SRB has published
states that such measures will be commentary by its Chair which
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taken into account in future MREL moratoria on loan repayments banking and finance discusses operational relief
decisions. apply to securitizations. consultations. measures being adopted by the
April 8: SRB provided additional June 19: European Parliament April 9: ESMA decided to further Board.
clarity on its approach to approved changes to the capital extend the response date for the April 7: ECB announced a series of
minimum requirements for own requirement regulation and consultation on the MiFID II/MiFIR collateral easing measures to
funds and eligible liabilities clarified the treatment of IFRS 9 review report to June 14. increase capacity to provide
(MREL), including the setting of and expected credit loss. April 9: ESMA postponed the funding and liquidity.
MREL targets, taking the impact September 21: EBA announced it application of the annual non- April 9: ESMA acknowledged that
of the COVID-19 crisis into would phase out certain elements equity transparency calculations COVID-19 has made it difficult for
account. of its legislative and non- and the calculations for the fund managers to file certain
April 16: ECB announced it will legislative loan moratoria that systematic internalizer test for reports and encouraged National
temporarily allow lower capital were introduced in response to derivatives, ETCs, ETNs, emission Competent Authorities to adopt a
requirements for market risk by COVID-19. risk-based approach and not
allowances and structured finance
reducing the qualitative market December 2: EBA reactivated its prioritize supervisory actions.
products under MiFID II.
risk multiplier for six months. guidelines on legislative and non- April 9: ESMA issued a statement
April 22: EBA proposed to adjust legislative moratoria until March May 4: EBA, EIOPA and ESMA
to promote National Competent
the capital impact for market risk 31, 2021. published joint draft Regulatory
Authorities regarding the
by amending its standards on December 16: European Technical Standards to amend the
Delegated Regulation on the risk timeliness of fulfilling external
prudent valuation, including a use Commission announced an action audit requirements for interest
of 66% aggregation factor until plan to prevent the build-up of mitigation techniques for non-
centrally cleared OTC derivatives rate benchmark administrators
December 31, 2020. NPLs due to COVID-19.
to incorporate a one-year deferral and contributors to interest rate
April 28: European Commission
of the two implementation benchmarks.
proposed amendments to the
EU's banking prudential rules, phases of the bilateral margining April 15: ECB issued a non-
proposing exceptional temporary requirements. objection decision supporting
measures by adapting the June 18: EBA extended the national macroprudential
timeline of the application of deadline for the application of its authorities’ macroprudential
international accounting guidelines on payment moratoria measures taken in response to
standards on banks' capital, by by three months to September COVID-19.
treating more favorably public 30, 2020. In addition, they
highlighted that the
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guarantees granted during this implementation timeline April 15: ESMA said it supports
crisis, by postponing the date of envisaged in the EBA’s IRB decisions by national regulators to
application of the leverage ratio roadmap to repair internal place restrictions on short selling
buffer and by modifying the way models remains overall and is coordinating alignment of
of excluding certain exposures unchanged. the renewal process.
from the calculation of the April 22: ECB adopted temporary
leverage ratio.
measures to mitigate the effect
June 19: European Parliament
on collateral availability of
approved changes to the capital
requirement regulation, including possible rating downgrades.
the deferral of implementation of May 14: ESRB released a
the leverage ratio buffer to statement with a set of
January 2023. Although not recommended actions in five
mentioned in the press release, priority areas in response to
the draft resolution also proposes COVID-19.
additional flexibility to competent May 14: ESMA expressed its
authorities in relation to the support for ESRB’s proposal that
market risk multiplier to mitigate national regulators enhance
the negative effects of the supervision of investment funds
extreme market volatility.
with significant exposures to
July 9: EBA released a statement
corporate debt and real estate.
on resolution planning in
May 18: ESMA noted that several
light of the COVID-19 pandemic
and updated its view on MREL national regulators did not renew
decisions. emergency restrictions on short
July 28: ECB extended its selling and similar transactions.
recommendation that banks not June 2: EBA released guidelines to
pay dividends until January 2021 address gaps in reporting and
and issued a letter with its disclosure caused by COVID-19.
expectation that banks exercise
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extreme moderation on variable June 8: ESRB released a statement
remuneration to conserve capital. detailing its second set of actions
July 28: ECB committed to allow in response to COVID-19,
banks to operate below the P2G including a recommendation that
and the combined buffer distributions be restricted.
requirement until at least end- June 11: ESMA renewed its
2022, without automatically decision to temporarily require
triggering supervisory actions. the holders of net short positions
September 17: ECB announced to notify the relevant national
that it would allow banks to competent authority if the
exclude central bank exposures position exceeds 0.1% of the
from the leverage ratio until June issued share capital.
27, 2021.
July 7: EBA released a report
December 15: ECB asked banks to
clarifying the implementation of
refrain from or limit (according to
certain rules) dividends and share adjustments to the prudential
buybacks until September 2021. framework due to COVID-19.
December 15: EBA asked banks to August 7: EBA provided clarity on
follow conservative capital the implementation of the
distribution strategies. reporting and disclosure
December 18: ESRB issued revised framework in the context of
expectations on the restriction of COVID-19 measures.
dividends. August 11: EBA published
guidance on the impact of CRR
2021 adjustments in response to the
January 29: EBA published
COVID‐19 pandemic on
guidelines on the prudential
supervisory reporting and
framework in response to COVID-
19-related questions. disclosure.
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June 18: ECB extended leverage August 14: EBA updated its work
ratio relief for banks to exclude program for 2020 in light of the
certain central bank exposures COVID-19 pandemic.
until March 2022. September 17: ESMA renewed its
July 23: ECB decided not to decision to temporarily require
extend dividend recommendation the holders of net short positions
beyond September 2021.
to notify the relevant national
competent authority if their
position exceeds 0.1% of the
issued share capital.
September 30: EBA published its
work program for 2021, including
work to address the effects of
COVID.
December 17: ESMA renewed its
decision requiring holders of net
short positions to notify
regulators if the position reaches,
exceeds or falls below 0.1% of the
issued share capital.
2021
January 28: ECB published the
outcome of its 2020 Supervisory
Review and Evaluation Process
and announced its supervisory
priorities for 2021.
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January 29: ECB announced it will
conduct a stress test which will
replace the 2020 EBA stress test
postponed due to COVID-19.
March 15: ESMA decided not to
renew its decision to require
holders of net short positions to
notify the relevant national
competent authority if the
position reaches, exceeds or falls
below 0.1% of the issued share
capital.
May 20: ESMA recommended to
the European Commission to
permanently lower the threshold
to notify net short positions on
shares to national competent
authorities from 0.2% to 0.1%.
May 27: EBA published a thematic
note looking into macroeconomic
impact of the pandemic, in banks’
loan portfolios, and in accounting
rules between the U.S. and the
E.U.
June 3: EBA published its 2020
Annual Report, which presents
the ad-hoc activities the EBA
undertook to mitigate the impact
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of COVID-10 on the EU banking
sector.
September 8: EBA, EIOPA and
ESMA published a joint assemnet
report highlighting risks in phasing
out of crisis measures.
United States 2020 2020 2020 2020 2020
March 17: FRB, FDIC, and OCC March 17: FRB, FDIC, and OCC March 19: The FDIC Chairman March 24: FRB stated that it will March 24: FRB announces
encouraged banks to use their encouraged banks to use their asked FASB to delay transitions to grant firms additional time to adjustments to its supervisory
capital buffers and issued an liquidity buffers. certain accounting rules including resolve non-critical existing approach with increased
interim final rule to introduce a April 23: FRB announced those related to CECL and TDR supervisory findings, but CCAR monitoring and outreach and
technical change to make any temporary measures to help classifications. capital plans should still be reduced examination activities,
March 22: FRB, CSBS, CFPB, FDIC, submitted by April 6. especially for small financial
automatic limitations on capital increase the availability of
NCUA, and OCC announced they March 31: FRB said it would delay institutions.
distributions more gradual. intraday credit by suspending
will not direct institutions to the effective date for its revised March 24: FRB delayed the
March 23: FRB issued an interim uncollateralized intraday credit automatically categorize loan control framework by six months. implementation of changes to
final rule to introduce a technical limits and permitting a modifications as troubled debt April 2: FRB, FDIC, OCC, SEC, and procedures governing the
change to make any automatic streamlined procedure for restructurings. CFTC said they would consider provision of intraday credit to U.S.
limitations on capital distributions secondary credit institutions to March 27: FRB, FDIC, and OCC comments on their proposal to branches and agencies of foreign
under the TLAC rule more request collateralized intraday announced an interim final rule update the Volcker Rule’s covered banking organizations by six
gradual. credit. that would provide flexibility to funds provision until May 1, a months.
March 27: FRB, FDIC, and OCC allow banks to mitigate the month later than originally March 25: SEC has extended
May 5: FRB, FDIC, and OCC
said they would allow early effects of CECL. announced. certain reporting deadlines for
announced an interim final rule to
adoption of SA-CCR. April 7: SEC said that financial April 10: CFTC announced it public companies and issued
April 1: FRB announced a adjust the Liquidity Coverage
Ratio for banks participating in institutions that take advantage of would extend deadlines for guidance on COVID-19 related
temporary change to its the CARES Act provision that certain open consultations. disclosures.
supplementary leverage ratio the Money Market Mutual Fund
allows the deferral of April 27: FRB and FDIC announced March 31: CFTC has issued no-
rule, which would exclude U.S. Liquidity Facility and the Paycheck
implementation of two GAAP that they would extend the action relief to foreign affiliates of
Treasury securities and deposits Protection Program Liquidity
comment period for their certain futures commission
Facility.
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at Federal Reserve Banks from the standards will not be in violation proposed guidance for large merchants affected by COVID-19,
calculation of the rule for holding of GAAP. foreign banks’ resolution plans by which will last until September 30.
companies until March 31, 2021. April 22: OCC, FRB, and FDIC 30 days. April 8: SEC issued a statement on
April 6: FRB, FDIC, and OCC announced a final rule with May 6: FRB and FDIC extended the importance of robust
announced two interim final rules changes to the interim final rule the deadlines for two resolution disclosures and reporting during
for community banks, including a of March 27 on CECL plan requirements. COVID-19.
change to the community bank implementation. April 14: FRB, FDIC, OCC, NUCA,
May 28: CFTC approved an
leverage ratio. and CFPB issued an interim final
interim final rule to grant an
April 7: FRB, OCC, FDIC, CFPB and rule to temporarily defer real
extension of the compliance estate-related appraisals and
NCUA issued a revised
schedule for initial margin evaluations and related reporting
interagency statement on loan
requirements for uncleared swaps requirements under the agencies'
modifications. The statement
includes supervisory in response to COVID-19. interagency appraisal regulations.
interpretations on past due and June 10: CFTC extended elements June 15: FRB announced that it
nonaccrual regulatory reporting of its COVID-19 no-action relief will resume examination activities
of loan modification programs through September 30, 2020. for all banks, after previously
and regulatory capital. announcing a reduced focus on
April 9: FRB, FDIC, and OCC exam activity in light of COVID-19.
announced an interim final rule to June 23: FRB, FDIC, OCC, NCUA,
encourage lending through the and state regulators issued
Small Business Administration's guidance to examiners to
Paycheck Protection Program promote consistency and
(PPP), clarifying that a zero flexibility in oversight of financial
percent risk weight applies to institutions affected by COVID-19.
loans covered by the PPP for
capital purposes.
April 30: FRB clarified that the
interest in a Main Street
loan retained by an Eligible
Lender should be
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assigned the risk weight
applicable to the counterparty for
the loan in a FAQ.
May 15: FRB, FDIC, and OCC
announced an interim final rule
permitting depository institutions
to choose to exclude U.S.
Treasury securities and deposits
at Federal Reserve Banks from the
calculation of the supplementary
leverage ratio.
June 25: FRB decided to suspend
share repurchases and restrict
dividends for the third quarter of
2020.
September 29: FRB finalized a
rule to neutralize the regulatory
capital and liquidity effects for
banks that participate in certain
Fed liquidity facilities.
September 30: FRB extended for
an additional quarter measures
prohibiting share repurchases and
the capping of dividend
payments.
December 18: FRB, after
conducting a second round of
bank stress tests, will limit
dividends and share repurchases
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based on income for the past year
in Q1 of 2021.
December 18: FRB will keep the
CCyB at 0%.
2021
March 19: FRB, FDIC, and OCC
announced that the temporary
change to the supplementary
leverage ratio issued on May 15,
2020, will expire as scheduled on
March 31, 2021.
March 25: FRB said that dividend
and share repurchase restrictions
will be lifted after June 30 for
banks that are well-capitalized
according to recent stress tests.
Argentina * * 2020 * *
March 19: Central Bank of the
Argentine Republic arranged for
the provisional flexibility of the
parameters with which bank
debtors are classified.
Australia 2020 2020 2020 2020 2020
March 19: APRA announced March 30: APRA allows March 23: APRA provided March 23: APRA said it is April 1: APRA announced changes
support for use of capital buffers authorized deposit-taking flexibility for treatment of suspending all prudential to reporting obligations in
to promote ongoing lending to institutions to include the benefit payment holidays and framework consultations and response to COVID-19.
the economy. of the Initial Allowance in the reorganized loan repayments that actions on all non-essential
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April 7: APRA released a calculation of the Liquidity such arrangements are not matters until at least September April 1: APRA and ASIC release a
statement that it expects ADIs Coverage Ratio, Minimum treated as in arrears or 30, 2020. The implementation letter on the impact of COVID-19
and insurers to limit discretionary Liquidity Holdings Ratio and Net restructured. dates for recently finalized rules for superannuation trustees.
capital distributions, including Stable Funding Ratio from 31 July 8: APRA announced an will be reconsidered. April 8: APRA will suspend issuing
dividends. The statement includes March 2020. extension of its temporary capital March 23: ASIC has immediately new banking or insurance licenses
guidance for determining treatment for bank loans with suspended a number of near-term for at least six months.
distributions. APRA also expects repayment deferrals, as well as activities which are not time- April 8: ASIC released feedback on
that Boards will appropriately temporarily adjusting the capital critical, including consultation and financial institutions' preparation
limit executive cash bonuses. treatment of restructured loans. reviews. for LIBOR transition recognizing
May 7: APRA released an FAQ on September 9: APRA issued a letter March 30: APRA announced it is that disruptions from the COVID-
its expectations for the regulatory outlining its response to its deferring its scheduled 19 outbreak may affect the timing
capital approach for loan consultation on capital measures implementation of the Basel III of some aspects of institutions’
repayment deferrals and and reporting requirements for reforms in Australia by one year. transition plans.
clarifications on its guidance for loans impacted by COVID-19. April 16: APRA announced new April 14: ASIC released a
mortgage lending. commencement dates for statement detailing how its
May 19: APRA published an FAQ 2021 prudential and reporting regulatory work and priorities
on market risk capital July 19: APRA announced standards. have changed in response to
requirements in response to regulatory support for banks August 10: APRA announced it COVID-19.
COVID-19. offering temporary financial will recommence public August 31: APRA has published its
June 17: APRA updated its FAQ to assistance to borrowers impacted consultations on select policy 2020-2024 Corporate Plan, which
provide clarification on the by COVID-19, largely mirroring the reforms and begin a phased has been updated to account for
standardized approach to credit temporary support measures resumption of the issuing of new the substantial impact of the
risk-weighted assets. APRA announced in March 2020. licenses. COVID-19 pandemic.
July 29: APRA updated its capital August 25: APRA is extending the
management guidance for banks time period for the temporary 2021
and insurers, easing restrictions adjustments to APS 220 to apply February 1: APRA announced its
around paying dividends. to loans granted repayment 2021 supervision and policy
August 13: APRA issued a deferrals from 8 July 2021 until 30 priorities.
consultation letter to banks September 2021.
regarding capital measures and
iif.com © Copyright 2020. The Institute of International Finance, Inc. All rights reserved. Page 17Provisioning, Definition of
Consultations/ Other (reporting, stress
Jurisdiction Capital Liquidity Default and NPL-related
Implementation Timetables testing, conduct, etc.)
measures
reporting requirements for loans
affected by COVID-19.
December 15: APRA said it will no
longer hold banks to a minimum
level of earnings retention but
expects them to be cautious when
calculating dividends.
December 21: APRA announced it
would keep the CCyB at 0%.
Belgium 2020 * 2020 * 2020
March 11: National Bank of April 15: National Bank of Belgium March 13: National Bank of
Belgium lowered the counter- released a Q&A for credit Belgium wrote to its banks
cyclical buffer level from 0.5% to institutions on the moratorium welcoming the measures of
0% to support banks in extending and guarantee scheme including EBA/ECB and stating its intention
credit facilities to customers. prudential and accounting to apply them in full.
April 1: National Bank of Belgium implications. March 17: FSMA announces
expects banks to comply with ECB prohibition of short selling.
recommendation regarding April 2: FSMA announced an
dividend distribution policy in the explanation regarding recording
context of the management of the of telephone conversation under
coronavirus. MiFID II.
June 30: National Bank of Belgium April 14: National Bank of Belgium
said it would keep the announced an extension for
countercyclical capital buffer at certain reporting requirements in
0% in Q3. accordance with EU-level
July 30: National Bank of Belgium changes.
extended its recommendation to April 15: FSMA extended the
suspend dividend payments until prohibition of short selling until
at least January 1, 2021 and May 18.
encouraged a cautious attitude
iif.com © Copyright 2020. The Institute of International Finance, Inc. All rights reserved. Page 18Provisioning, Definition of
Consultations/ Other (reporting, stress
Jurisdiction Capital Liquidity Default and NPL-related
Implementation Timetables testing, conduct, etc.)
measures
towards variable remuneration May 18: FSMA suspended the ban
and profit sharing. on creating or increasing net short
September 30: National Bank of positions as of May 19.
Belgium kept the countercyclical
capital buffer at 0% and
maintained its expectation not to
increase at least until Q3 2021.
December 18: National Bank of
Belgium asked institutions to
refrain from or limit paying
dividends through September 30,
2021.
December 23: National Bank of
Belgium said it would keep the
CCyB at 0% for Q1 2021.
2021
March 31: National Bank of
Belgium said it would keep the
CCyB at 0% for Q2 2021.
June 23: National Bank of Belgium
said it would keep the CCyB at 0%
for Q3 2021.
September 28: National Bank of
Belgium decided to lapse decision
on dividend restrictions at the end
of September but reminded that
banks need to remain prudent
when deciding on dividends,
iif.com © Copyright 2020. The Institute of International Finance, Inc. All rights reserved. Page 19Provisioning, Definition of
Consultations/ Other (reporting, stress
Jurisdiction Capital Liquidity Default and NPL-related
Implementation Timetables testing, conduct, etc.)
measures
share buy-backs and variable
remuneration.
September 30: National Bank of
Belgium decided to keep the CCyB
at 0% for Q4 2021.
Brazil 2020 2020 2020 2020 *
March 16: Banco Central do Brasil Late February: Banco Central do March 16: Banco Central do Brasil April 20: Banco Central do Brasil
reduced the Conservation Capital Brasil reduced the reserve reduced provisioning rules for the postponed the deadline of Pillar 3
Buffer from 2.5% to 1.25% for one requirement ratio on time refinancing of certain loans for six reporting to June 30.
year. deposits and increased the months.
amount of reserves considered
High Quality Liquid Assets.
Canada 2020 2020 2020 2020 2020
March 13: OSFI lowered the March 27: OSFI announced March 27: OSFI announced March 13: OSFI said that no buffer April 3: OSFI released a statement
Domestic Stability Buffer flexibility adjustments to the LCR transitional arrangements for increases would happen for at detailing the steps it has taken to
requirement from 2.25% of RWA and NSFR frameworks and expected loss provisioning and least 18 months. support the resilience of financial
to 1% of RWA. encouraged banks to utilize provided guidance to the March 13: OSFI said that it will institutions.
March 13: OSFI set out an liquidity pools. application of IFRS9. They also suspend all consultations and new April 9: OSFI announced
expectation that dividend stated that loans subject to policy development. extensions of several regulatory
increases and share buybacks payment deferral arrangements March 27: OSFI acknowledged filings.
should be paused. will not be deemed as non- and adopted the revised BCBS April 16: OSFI released a
March 27: OSFI encouraged banks performing. timetable for Basel III comprehensive FAQ to explain the
to use leverage ratio buffers and April 9: OSFI expressed their view implementation. Further they policy responses it has taken in
announced transitional that a maximum add-back of 70% announced that the regard to COVID-19.
arrangements for capital of allowances to Common Equity implementation date for FRTB June 8: OSFI further extended
treatment of expected loss Tier 1 capital is appropriate for and CVA will be delayed until 2020 regulatory return
provisioning. ECL accounting. January 2024. implementation deadlines.
iif.com © Copyright 2020. The Institute of International Finance, Inc. All rights reserved. Page 20Provisioning, Definition of
Consultations/ Other (reporting, stress
Jurisdiction Capital Liquidity Default and NPL-related
Implementation Timetables testing, conduct, etc.)
measures
March 30: OSFI determines August 31: OSFI will gradually April 9: OSFI extended the August 6: OSFI published a
capital treatment of loans to phase out the special capital deadline for the implementation newsletter including plans to
SMEs under programs to support treatment of loan deferrals that of the final two phases of the restart policy development and
COVID-19 efforts. was provided to banks at the start initial margin requirements for consultations with the financial
April 9: OSFI temporarily excluded of the pandemic. non-centrally cleared derivatives sector.
central bank reserves and HQLA by one year.
sovereign-issued securities from
the leverage ratio exposure
measure.
April 9: OSFI is lowering the
capital floor factor from 75% to
70% until the domestic
implementation of the Basel III
capital floor expected in Q1 2023.
April 17: OSFI has released a
COVID-19-related explanatory
memo on Basel III and bank
capital, buffer utilization, and
related dividend restrictions.
May 1: OSFI issued a letter stating
expectations on the use of Pillar II
capital buffers for DTIs using the
Standardized Approach to credit
risk.
June 23: OSFI announced that the
Domestic Stability Buffer will
remain at 1% of total risk-
weighted assets.
iif.com © Copyright 2020. The Institute of International Finance, Inc. All rights reserved. Page 21Provisioning, Definition of
Consultations/ Other (reporting, stress
Jurisdiction Capital Liquidity Default and NPL-related
Implementation Timetables testing, conduct, etc.)
measures
July 15: OSFI released a statement
supporting the recent statements
issued by the BCBS and the FSB
reinforcing the usability of banks'
capital buffers.
November 5: OSFI extended the
exclusion of central bank reserves
and sovereign-issued securities
from leverage ratio exposure
measures until December 31,
2021.
December 8: OSFI announced
that the Domestic Stability Buffer
would remain at 1%.
December 14: OSFI reconfirmed
its position that banks should be
conservative with capital
distributions and released certain
guidelines.
2021
January 27: OSFI announced its
policy on the capital treatment of
loans through a new federal
program to support highly
affected business sectors.
March 16: OSFI announced the
unwinding of regulatory
iif.com © Copyright 2020. The Institute of International Finance, Inc. All rights reserved. Page 22Provisioning, Definition of
Consultations/ Other (reporting, stress
Jurisdiction Capital Liquidity Default and NPL-related
Implementation Timetables testing, conduct, etc.)
measures
adjustments to the market risk
capital requirements for banks,
effective May 1, 2021.
June 17: OSFI decided to increase
the Domestic Stability Buffer to
2.5% from October 31, 2021.
August 12: OSFI confirmed that
the exclusion of sovereign-issued
securities from the leverage ratio
exposure measure will not be
extended past December 31,
2021.
November 4: OSFI announced to
lift expectations on dividends,
share repurchases and executive
compensation.
China 2020 2020 * * *
October 1: PBOC and CBIRC April 3: PBOC will cut the required
established the Countercyclical reserve ratio for small and
Capital Buffer and clarified that medium banks by 1% with
the ratio will be initially set at reductions of 0.5% on both April
zero. 15 and May 15.
April 7: PBOC released an FAQ on
targeted reserve ratio
requirement cuts.
iif.com © Copyright 2020. The Institute of International Finance, Inc. All rights reserved. Page 23Provisioning, Definition of
Consultations/ Other (reporting, stress
Jurisdiction Capital Liquidity Default and NPL-related
Implementation Timetables testing, conduct, etc.)
measures
Finland 2020 2020 2020 2020 2020
March 16: FIN-FSA confirmed that March 16: FIN-FSA confirmed that April 6: FIN-FSA announced that it March 24: FIN-FSA extended time June 25: FIN-FSA confirmed that
banks are temporarily exempt banks are temporarily exempt will comply with EBA standards on for reporting by non-life and life only parts of the EBA Guidelines
from fulfilling certain additional from fulfilling certain additional legislative and non-legislative insurance companies. published June 2 on additional
capital requirements. liquidity requirements. moratoria on loan repayments. June 29: FIN-FSA will comply with reporting and disclosure
March 17: FIN-FSA lowered bank May 7: FIN-FSA clarified that the EBA’s extension of payment requirements in the context of
capital requirements by 1% by moratoria deadlines to September COVID-19 will be mandatory.
adoption of a transitional
removing the systemic risk buffer 30. July 3: FIN-FSA said that in line
provision under the CRR may be
and adjusting bank-specific with an earlier ESMA decision, the
requirements of all credit used to mitigate the impact of net short position reporting
institutions. expected credit-loss provisioning threshold remains at 0.1%.
March 17: FIN-FSA will closely under IFRS 9 on CET1.
monitor that banks use the August 20: FIN-FSA announced it
positive effects of measures to has applied the updated EBA
mitigate the impact of the crisis guidelines on legislative and non-
and not to channel them into the legislative moratoria on loan
payment of dividends or repayments.
performance bonuses.
March 30: FIN-FSA issued a 2021
recommendation to supervised
January 28: FIN-FSA has applied
banks to refrain from dividend
the updated EBA guidelines on
distributions until October 1.
legislative and non-legislative
April 6: FIN-FSA decided to
moratoria on loan repayments.
remove the additional capital
requirement of the systemic risk
buffer for certain banks in
addition to other systemically
important institutions.
June 29: FIN-FSA decided to
maintain the countercyclical
iif.com © Copyright 2020. The Institute of International Finance, Inc. All rights reserved. Page 24Provisioning, Definition of
Consultations/ Other (reporting, stress
Jurisdiction Capital Liquidity Default and NPL-related
Implementation Timetables testing, conduct, etc.)
measures
capital buffer rate at 0.0% and
relaxed the residential mortgage
loan cap.
July 29: FIN-FSA extended the
validity of its profit distribution
recommendation that credit
institutions under its supervision
do not pay or commit to pay
dividends or other profit
distributions until January 1,
2021. The recommendation also
applies to repurchases and
redemptions of shares.
September 30: FIN-FSA decided to
maintain the countercyclical
capital buffer rate at 0% and kept
the loan caps unchanged.
December 18: FIN-FSA requested
extreme prudence in profit
distributions until September 30,
2021.
December 18: FIN-FSA said it
would keep the loan cap and CCyB
unchanged.
2021
February 17: FIN-FSA announced
amendments to its regulations
iif.com © Copyright 2020. The Institute of International Finance, Inc. All rights reserved. Page 25Provisioning, Definition of
Consultations/ Other (reporting, stress
Jurisdiction Capital Liquidity Default and NPL-related
Implementation Timetables testing, conduct, etc.)
measures
and guidelines related to EU
Capital Requirements Regulation.
March 18: FIN-FSA announced
that the maximum loan-to-
collateral (LTC) ratio and banks’
capital requirements will remain
unchanged.
June 29: FIN-FSA lowered the
loan cap for residential mortgage
loans by five percentage points
and maintained the CCyB rate at
0%.
July 27: FIN-FSA decided not to
extend its recommendation on
distribution of credit institutions’
profits beyond 30 September
2021.
September 24: FIN-FSA decided
to maintain the CCyB rate at 0.0%.
France 2020 * 2020 * 2020
March 18: French authorities to April 7: AMF clarified accounting March 17: AMF announced a
reduce the countercyclical capital standards for calculation of short selling ban for one month.
buffer from 0.25% RWA to 0% expected credit losses in light of April 8: AMF has published a
RWA in accordance with the ECB recent announcements from statement clarifying appropriate
proposal. ESMA, EBA, and IASB. fund and risk management
March 30: ACPR called on credit
protocols for asset managers
institutions under its direct
during the COVID-19 crisis.
supervision and finance
iif.com © Copyright 2020. The Institute of International Finance, Inc. All rights reserved. Page 26Provisioning, Definition of
Consultations/ Other (reporting, stress
Jurisdiction Capital Liquidity Default and NPL-related
Implementation Timetables testing, conduct, etc.)
measures
companies to refrain from April 9: ACPR announces a
distributing dividends or relaxation of the reporting
undertaking buybacks until at conditions for the banking sector.
least October 1. April 15: AMF announced the
April 1: High Council for Financial extension of the net short
Stability lowered the position ban until May 18, 2020
countercyclical capital buffer to and issued an FAQ to clarify
0% as of 2 April. details of the ban.
July 28: ACPR called on financial May 18: AMF suspended the ban
institutions to follow the ESRB’s on the creation or increase of net
recommendations on short positions.
distributions of dividends,
variable compensation, and share
buybacks.
2021
February 18: ACPR requested
financial institutions remain very
cautious with regard to
distributions (dividends, share
buybacks, variable compensation)
until September 30, 2021.
October 1: ACPR confirmed to lift
its recommendation on
distributions (dividends, share
buybacks, variable
compensation).
Germany 2020 2020 2020 2020 2020
iif.com © Copyright 2020. The Institute of International Finance, Inc. All rights reserved. Page 27Provisioning, Definition of
Consultations/ Other (reporting, stress
Jurisdiction Capital Liquidity Default and NPL-related
Implementation Timetables testing, conduct, etc.)
measures
March 18: Deutsche Bundesbank March 20: BaFin announced in its March 27: BaFin and Deutsche April 2: BaFin and Deutsche March 19: BaFin clarified the
announced that BaFin intends to FAQs that liquidity buffers can be Bundesbank shared the view that Bundesbank postponed the stress scope of prohibitions on short-
lower the countercyclical capital used without any approval of the the current situation does not test for less-significant institutions selling.
buffer from 0.25% to 0% as of supervisors in the current stress lead to an undifferentiated, planned for 2021 to 2022.
April 1. situation as foreseen in the automatic transfer of financial
March 24: BaFin recommends regulation. instruments from Level 1 to Level
firms pause share buybacks and 2 or Stage 3.
carefully consider dividends and
bonuses.
March 30: BaFin confirmed that
they expect banks to not pay any
dividends or distribute profits
until at least October 2020.
March 31: BaFin issued a general
order to reduce the quota for
domestic countercyclical capital
buffer from 0.25 percent to 0
percent as of April 1.
August 4: BaFin reiterated its
position on dividend payments.
September 21: BaFin will let less
significant institutions under its
supervision exclude certain
exposures to central banks from
the leverage ratio.
Hong Kong 2020 2020 2020 2020 2020
March 16: HKMA lowered the April 3: HKMA announced March 30: HKMA announced that March 30: HKMA said it would April 7: HKMA issued a letter on
counter-cyclical buffer level from measures to increase the banking it is in discussions with relevant defer Basel III implementation in AML/CFT measures during COVID-
2.0% to 1.0% to support banks in sector’s liquidity and encouraged bodies about the application of line with BCBS’s updates. 19.
banks to use their liquidity buffers expected credit loss provisioning
iif.com © Copyright 2020. The Institute of International Finance, Inc. All rights reserved. Page 28Provisioning, Definition of
Consultations/ Other (reporting, stress
Jurisdiction Capital Liquidity Default and NPL-related
Implementation Timetables testing, conduct, etc.)
measures
extending credit facilities to even if their LCRs fall below the requirements and expects to March 31: SFC said it is extending April 21: SFC released a statement
customers. requirement. make a further announcement the implementation deadlines of on its commitment to providing
July 7: HKMA announced that the April 3: HKMA said the current soon. certain intermediary regulations. regulatory relief during COVID-19.
countercyclical capital buffer level of regulatory reserves will be April 8: HKMA decided to lower May 7: SFC will postpone the April 22: HKMA decided to
remains unchanged at 1.0%. reduced by half. the regulatory reserve implementation of initial margin postpone the 2020 Supervisor-
October 12: HKMA announced requirement used for provisioning requirements for non-centrally Driven Stress Test until 2021.
that the countercyclical capital by 50% with immediate effect. cleared over-the-counter
buffer remains unchanged at 1%. May 25: HKMA clarified its derivative transactions by one
expectation on treatment of year, in line with IOSCO and BCBS.
2021 expected credit loss provisioning. May 25: HKMA will defer the final
January 28: HKMA announced two implementation phases of
that the countercyclical capital margin requirements for non-
buffer will remain unchanged at centrally cleared OTC derivatives
1%. by an additional year until 1
May 17: HKMA announced that September 2022.
the countercyclical capital buffer
will remain unchanged at 1%. 2021
August 5: HKMA announced that June 10: HKMA announced
the countercyclical capital buffer revision to Basel III
will remain unchanged at 1%. implementation timeline.
October 28: HKMA announced
that the countercyclical capital
buffer will remain unchanged at
1%.
India 2020 2020 2020 2020 2020
March 27: Reserve Bank of India March 27: Reserve Bank of India April 17: Reserve Bank of India April 17: Reserve Bank of India March 20: SEBI announced
decided to maintain current decided to defer the permitted to grant a moratorium outlined detailed instructions regulatory measures including
minimum capital conservation implementation of the Net Stable of three months on payment of all relating to extension of resolution position limits on stocks and
ratios until September 30 with the Funding Ratio to October 1. term loan instalments falling due timelines. derivatives.
last tranche of the capital between March 1 and May 31 and
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