The European Banking Authority (EBA) published a report, that provides clarifications on the application of the prudential framework that have been raised as a consequence of the COVID-19 pandemics. This report is part of the EBA’s wider monitoring of the implementation of COVID-19 policies as well as of the application of existing policies under these exceptional circumstances.
The EBA has already taken a substantial number of measures, which aimed at providing operational relief to institution within the current prudential framework. These include the publication, on 2 April 2020, of Guidelines on legislative and non-legislative moratoria on loan repayments, which encouraged institutions to grant payment holidays to customers.
Read the report here.