07.07.2020 

The European Banking Authority (EBA) published a report clarifying the application of the prudential framework put into place in response to the COVID-19 pandemic, including its guidelines on legislative and non-legislative moratoria on loan repayments. The report addresses several interpretative questions and presents an overview of the general payment moratoria in place based on notifications sent to the EBA. The report also considers topics that can arise when applying the operational risk framework. The report sets out common criteria to clarify supervisory and regulatory expectations regarding the treatment of COVID-19 operational risk losses in the capital requirement calculations. Credit institutions are encouraged to collect information on data losses, even when these are not expected to be part of the setting of capital requirements.

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