Prudential Regulatory Measures1 in Response to COVID-19 (As of September 20, 2021)

Prudential Regulatory Measures1 in Response to COVID-19 (as of September 20, 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.”

Provisioning, Definition of Consultations/ Other (reporting, stress 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.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) 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.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related 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.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures 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

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related 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.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures 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

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures 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 May 4: EBA, EIOPA and ESMA April 22: EBA proposed to adjust legislative moratoria until March to promote National Competent published joint draft Regulatory the capital impact for market risk 31, 2021. Authorities regarding the Technical Standards to amend the by amending its standards on December 16: European timeliness of fulfilling external prudent valuation, including a use Commission announced an action Delegated Regulation on the risk mitigation techniques for non- audit requirements for interest of 66% aggregation factor until plan to prevent the build-up of rate benchmark administrators December 31, 2020. NPLs due to COVID-19. centrally cleared OTC derivatives and contributors to interest rate April 28: European Commission to incorporate a one-year deferral benchmarks. proposed amendments to the of the two implementation 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 iif.com © Copyright 2020. The Institute of International Finance, Inc. All rights reserved. Page 8

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures 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

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures 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- disclosure. 19-related questions.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures 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.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures 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

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures 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 May 5: FRB, FDIC, and OCC allow banks to mitigate the month later than originally March 25: SEC has extended said they would allow early announced an interim final rule to effects of CECL. announced. certain reporting deadlines for 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. the Money Market Mutual Fund supplementary leverage ratio allows the deferral of April 27: FRB and FDIC announced March 31: CFTC has issued no- Liquidity Facility and the Paycheck rule, which would exclude U.S. implementation of two GAAP that they would extend the action relief to foreign affiliates of Protection Program Liquidity Treasury securities and deposits comment period for their certain futures commission Facility.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures 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. implementation. April 14: FRB, FDIC, OCC, NUCA, change to the community bank May 28: CFTC approved an and CFPB issued an interim final leverage ratio. interim final rule to grant an rule to temporarily defer real April 7: FRB, OCC, FDIC, CFPB and extension of the compliance NCUA issued a revised estate-related appraisals and schedule for initial margin interagency statement on loan evaluations and related reporting requirements for uncleared swaps modifications. The statement requirements under the agencies' 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

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures 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

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

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures 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

Provisioning, 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

Provisioning, 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. 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.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures 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. 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.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures 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. 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%.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures 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 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. China 2020 2020 * * *

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures 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. 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.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures April 6: FIN-FSA decided to legislative and non-legislative remove the additional capital moratoria on loan repayments. 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 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

2021 February 17: FIN-FSA announced amendments to its regulations 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. July 27: FIN-FSA decided not to extend its recommendation on distribution of credit institutions’ profits beyond 30 September 2021. 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

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures March 30: ACPR called on credit protocols for asset managers institutions under its direct during the COVID-19 crisis. supervision and finance April 9: ACPR announces a companies to refrain from relaxation of the reporting distributing dividends or conditions for the banking sector. undertaking buybacks until at April 15: AMF announced the least October 1. extension of the net short April 1: High Council for Financial position ban until May 18, 2020 Stability lowered the and issued an FAQ to clarify countercyclical capital buffer to details of the ban. 0% as of 2 April. May 18: AMF suspended the ban July 28: ACPR called on financial on the creation or increase of net institutions to follow the ESRB’s short positions. recommendations on 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. Germany 2020 2020 2020 2020 2020 March 18: Deutsche Bundesbank March 20: BaFin announced in its March 27: BaFin and Deutsche April 2: BaFin and Deutsche announced that BaFin intends to FAQs that liquidity buffers can be Bundesbank shared the view that Bundesbank postponed the stress

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures lower the countercyclical capital used without any approval of the the current situation does not test for less-significant institutions March 19: BaFin clarified the buffer from 0.25% to 0% as of supervisors in the current stress lead to an undifferentiated, planned for 2021 to 2022. scope of prohibitions on short- April 1. situation as foreseen in the automatic transfer of financial selling. 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. extending credit facilities to banks to use their liquidity buffers expected credit loss provisioning March 31: SFC said it is extending April 21: SFC released a statement customers. even if their LCRs fall below the requirements and expects to the implementation deadlines of on its commitment to providing requirement. certain intermediary regulations. regulatory relief during COVID-19.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures July 7: HKMA announced that the April 3: HKMA said the current make a further announcement May 7: SFC will postpone the April 22: HKMA decided to countercyclical capital buffer level of regulatory reserves will be soon. implementation of initial margin postpone the 2020 Supervisor- remains unchanged at 1.0%. reduced by half. April 8: HKMA decided to lower requirements for non-centrally Driven Stress Test until 2021. October 12: HKMA announced the regulatory reserve cleared over-the-counter that the countercyclical capital requirement used for provisioning derivative transactions by one buffer remains unchanged at 1%. by 50% with immediate effect. year, in line with IOSCO and BCBS. May 25: HKMA clarified its May 25: HKMA will defer the final 2021 expectation on treatment of two implementation phases of January 28: HKMA announced expected credit loss provisioning. margin requirements for non- that the countercyclical capital centrally cleared OTC derivatives buffer will remain unchanged at by an additional year until 1 1%. September 2022. May 17: HKMA announced that the countercyclical capital buffer 2021 will remain unchanged at 1%. June 10: HKMA announced August 5: HKMA announced that revision to Basel III the countercyclical capital buffer implementation timeline. 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 April 17: Reserve Bank of India between March 1 and May 31 and May 23: Reserve Bank of India April 20: SEBI decided that the conservation buffer delayed to announced to reduce Statutory clarified to exclude from the further extended timelines for measures implemented since September 30. The pre-specified Liquidity Ratio (SLR) by 18% and number of days past-due for the resolution review. March 23, 2020 will continue to trigger for loss absorption through increase Marginal Standing purpose of asset classification. be in force till May 28, 2020. conversion/write-down of Facility to 3%, permit SLR-eligible They also issued guidance on April 29: Reserve Bank of India Additional Tier 1 instruments will assets to be recognized as HQLA, provisioning. provided a list of regulatory

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures remain at 5.5% of RWA until and allow banks to operate under May 23: Reserve Bank of India returns which can be submitted September 30. 100% Liquidity Coverage Ratio for extended the moratorium on with a delay of a maximum of 30 April 1: Reserve Bank of India said certain period. payment of term loans by another days from the due date. it will not activate the September 29: Reserve Bank of three months. May 22: SEBI announced it would countercyclical capital buffer. India decided to defer the August 6: Reserve Bank of India extend the regulatory measures April 17: Reserve Bank of India implementation of NSFR confirmed asset classifications implemented on March 23, 2020 decided that all banks shall not guidelines until April 1, 2021. and provisioning under the until June 25, 2020. make any further dividend Resolution Framework for COVID- June 18: SEBI announced it would payouts from the profits 2021 19-related Stress. extend the regulatory measures pertaining to the financial year February 5: Reserve Bank of India announced on March 20, 2020 to ended March 31, 2020 until decided to further defer the 2021 July 30, 2020. further instructions. implementation of NSFR May 5: Reserve Bank of India July 21: SEBI announced it would June 21: Reserve Bank of India guidelines until October 1, 2021. decided to extend the treatment extend the regulatory measures assigned 0% risk weights to the of facility for restructuring announced on March 20, 2020 to Guaranteed Emergency Credit existing loans for Micro, Small and August 27, 2020. Line under the Emergency Credit Medium Enterprise subject to Line Guarantee Scheme. certain conditions. September 29: Reserve Bank of

India decided to defer the

implementation of the last tranche of 0.625% of the Capital Conservation Buffer from September 30, 2020 to April 1, 2021. October 9: Reserve Bank of India revised limits for the risk weight of regulatory retail portfolios and individual housing loans. December 4: Reserve Bank of India reiterated that banks should

2021 February 5: Reserve Bank of India decided to further defer the implementation of the last tranche of 0.625% of the Capital Conservation Buffer to October 1, 2021. April 22: Reserve Bank of India announced that banks may pay dividend for the financial year ended March 31, 2021, subject to the quantum of dividend being not more than fifty percent of the amount determined as per the dividend payout ratio. Indonesia 2020 2020 2020 2020 2020 May 28: OJK announced Credit April 14: Bank Indonesia raised April 16: OJK issued guidelines for March 23: OJK extended the March 23: OJK prohibits short Treatment / Restructuring the Macroprudential Liquidity accounting treatment, especially submission deadlines for certain selling transactions from March 2 Financing in accordance with POJK Buffer by 200 basis points for in the application of Financial reports by two months. until at a specified date Stimulus is excluded from the conventional commercial banks, Instruments and Fair Value March 31: Bank Indonesia relaxed determined by the OJK. calculation of low-quality assets beginning May 1. Measurement. mandatory reporting for December 28: OJK released a or Loans at Risk (LAR). commercial banks and all other statement on its 2020 policy May 28: OJK temporarily relaxed May 28: OJK temporarily removed parties effective from 31st March measures related to COVID and its obligations to fulfill Liquidity the obligation to fulfill the 2.5% 2020 until a date yet to be commitment to financial stability. Capital Conservation Buffer for Coverage Ratio (LCR) and Net determined.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures certain banks until March 31, Stable Funding Ratio (NSFR) for May 28: OJK postponed the 2021. certain banks as low as 85% by implementation of Basel III March 31, 2021. Banks are Reforms to January 1, 2023. 2021 required to prepare action plans October 23: OJK will extend the February 18: OJK announced to return the fulfillment of LCR relaxation policy on credit loosening of certain prudential and NSFR to 100% no later than restructuring for a year and regulation, including reduction in announced it will also extend 30 April 2021. RWA, to reduce the burden of the several other regulations as a cost of regulation. package.

Italy 2020 2020 * * 2020 March 20: Banca d’Italia March 20: Banca d’Italia March 17: CONSOB prohibited confirmed all banks and non-bank confirmed all banks and non-bank short selling on the entire Stock intermediaries are allowed to intermediaries are allowed to Exchange list. operate temporarily below the operate temporarily below the March 20: Banca d’Italia extended level of the Pillar 2 Guidance and liquidity coverage ratio. deadlines of reporting obligations. the capital conservation buffer. April 15: CONSOB further March 27: Banca d’Italia suspended all regulation related recommended that, at least until to COVID until May 11, 2020. October 1, all banks and banking April 22: Banca d’Italia issued a groups under its supervision will number of updates on supervisory not pay out any dividends and will reporting obligations. not take on any irrevocable May 18: CONSOB suspended the commitments regarding the ban on creating net short payment of dividends for the positions or increasing existing financial years 2019 and 2020; net short positions. and will refrain from carrying out share buy-backs aimed at remunerating shareholders.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures March 27: Banca d’Italia has maintained the countercyclical buffer rate at 0% for Q2 of 2020. July 26: Banca d’Italia will keep the countercyclical buffer rate at 0% for Q3 of 2020. July 28: Banca d’Italia updated its dividend restrictions and buffer policies to be in line with the ECB’s recommendations. December 16: Banca d’Italia renewed its decision on dividend distributions through September 30, 2021. December 18: Banca d’Italia announced it would keep the countercyclical buffer rate at 0% for Q1 2021. Japan 2020 2020 * 2020 2020 March 17: JFSA confirmed banks March 17: JFSA confirmed a March 30: JFSA announced the March 30: JFSA confirmed a can use capital buffers when flexible approach to banks consideration of deferral of its flexible approach to banks filing necessary to maintain lending breaching the liquidity coverage Basel III implementations deadline. volume. ratio. schedule, in line with BCBS’s August 31: JFSA published a March 17: JFSA confirmed that recent update. Also confirmed summary of its priorities for July certain rescue lending activity that Net stable funding ratio will 2020-June 2021 in light of COVID- would be risk-weighted at 0%. not be implemented for at least a 19. April 8: JFSA and BOJ have agreed year. to develop measures to April 14: JFSA will extend deadline 2021 temporarily exclude central bank for contracts for Settlement Agent for Bank’s Electronic Settlement

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures deposits from the leverage ratio System until the end of January 8: JFSA reconfirmed its exposure measure. September if they have shown stance on a flexible approach to April 17: JFSA proposed to their will to settle contract by end banks’ filing deadlines. remove central bank reserve from of May. the calculation of leverage ratio April 15: JFSA said companies can and maintain the current ratio. defer annual meetings in relation to the recent announcement of the revision of the Cabinet Office Order on Disclosure of Corporate Affairs which will extend the filing deadline of annual and quarterly securities reports, etc. to the end of September. April 15: JFSA proposed to defer the implementation of the final two phases of the margin requirements for non-centrally cleared derivatives. Mexico 2020 2020 2020 2020 * March 31: CNBV issued April 8: CNBV relaxed certain March 25: CNBV issued special March 26: CNBV suspended recommendations for banking liquidity rules, by deciding that accounting criteria, applicable to hearings and procedures during institutions to refrain from banks can register as liquid assets institutions of credit. The support March 23 to April 19. agreeing to the payment of those that had been eligible for will consist of the partial or total April 8: CNBV announced a delay dividends, share repurchases, or the Liquidity Coverage Ratio (LCR) deferral of capital and/or interest in the implementation of any other mechanism tending to until February 28 and will also payments for up to 4 months. regulatory standards including reward shareholders. grant some exceptions for April 8: CNBV said it will delay the Business Indicator Method and April 8: CNBV will grant corrective measures if a bank’s implementation of IFRS9 to TLAC requirements. temporary regulatory flexibility LCR falls below 100%. January 1, 2022. April 8: CNBV announced that it until March 31, 2021 so that September 23: CNBV extended April 15: CNBV issued will extend certain reporting liquidity requirements until March adjustments to the special deadlines.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures banks can use their capital 2021, with which banks will be accounting criteria and extended buffers. able to temporarily reduce their the target of its treatment for September 23: CNBV extended liquidity buffers below 100%. credit institutions. flexibility on the use of the capital April 27: CNBV issued special buffer until December 31, 2021. accounting criteria and October 14: CNBV expanded the information on loan modifications information about its regulatory for savings and credit institutions. facilities, including regulatory September 23: CNBV announced requirements and dividend a new package of measures for restrictions. credit restructuring.

2021 April 19: CNBV issued recommendations and guidelines for banks regarding payment of dividends. Netherlands 2020 2020 2020 2020 2020 March 17: DNB said that systemic March 20: DNB allowed banks to April 24: DNB guided banks to March 17: DNB announced that March 16: AFM concurs with the buffers will be lowered from 3% temporarily operate below the avoid excessively procyclical the introduction of a floor for ESMA decision to temporarily of global risk-weighted exposures liquidity coverage ratio. assumptions in their expected mortgage loan risk weighting will requiring the holders of net short to 2.5% for ING, 2% for Rabobank credit loss (ECL) estimations be postponed. positions to notify the relevant and 1.5% for ABN Amro. during the COVID-19 pandemic national competent authority. March 17: DNB emphasized that March 27: AFM announced it banks use freed-up capital to would exercise forbearance for support lending, and not to pay delayed financial reports, in dividend or share repurchases. accordance with ESMA March 20: DNB allowed banks to recommendations. temporarily operate below the April 16: DNB extended level of capital as defined by the submission deadlines for certain supervisory reporting.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures Pillar 2 Guidance and the capital conservation buffer. March 20: DNB stated that Pillar 2 Requirements can partially be met by capital instruments that do not qualify as Common Equity Tier 1 capital. March 23: DNB deferred extra capital requirement for mortgage loans until further notice. May 12: DNB clarified treatment for real estate valuation and capital requirements. May 27: DNB extended temporary relief measure for internal model capital requirements for market risk. June 19: DNB has decided to leave the CCyB unchanged at 0%. July 6: DNB supported the ESRB’s recommendation that investment firms limit distributions. July 28: DNB extended its call for banks to refrain from paying dividends and buying back own shares in accordance with ECB’s announcement. September 17: DNB said it will give leverage ratio flexibility to

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures smaller banks under its supervision, in line with the ECB. September 25: DNB left the CCyB unchanged at 0%. December 18: DNB left the CCyB unchanged at 0%.

2021 March 26: DNB left the CCyB unchanged at 0%. June 22: DNB followed ECB in extending leverage ratio relief for banks until 31 March 2022. August 16: DNB follows ECB's lead in not extending bank dividend recommendation beyond September 2021. Norway 2020 2020 2020 2020 2020 March 13: Ministry of Finance March 13: Finanstilsynet April 3: Finanstilsynet provided June 15: Finanstilsynet March 13: Finanstilsynet lowered the countercyclical confirmed companies can use the guidance on treatment of IFRS9. postponed the implementation of announced postponement of capital buffer level from 2.5% to liquidity reserve to cover liquidity April 3: Finanstilsynet explained SREP to 2021 and decided not to certain reporting deadlines. 1.0% to support banks in output in a stress situation. the EBA guideline on non- make new Pillar 2 decisions in the June 11: Finanstilsynet decided to extending credit facilities to performing loans and clarified second half of 2020. extend the lower threshold for customers. reporting net short positions that though no moratoriums are March 13: Norges Bank said that (0.1%) for three months in in Norway, the guideline can be when banks’ general meetings accordance with ESMA. decide on dividend payments, applied to companies operating in June 23: Finanstilsynet decided they should in the period ahead countries with moratoriums. not to implement the EBA take account of the extraordinary April 20: Finanstilsynet specified guideline on reporting published situation now facing. how the capital requirement on June 2.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures March 25: Finanstilsynet asked should be calculated for loans December 17: Finanstilsynet the MoF to put a temporary ban covered by the state guarantee renewed the decision to keep the on paying dividends for 2019. scheme. reporting threshold for net short June 18: Ministry of Finance said positions at 0.1%. it would follow Norges Bank’s advice to leave the countercyclical 2021 capital buffer at 1%. March 18: Finanstilsynet July 1: Ministry of Finance announced that the decision to expressed its expectation that keep the reporting threshold for credit institutions refrain from net short positions at 0.1% will distributing profits in any form expire on March 19, 2021. until the uncertainty regarding the economic outlook has subsided. This also applies to share buy-backs. September 2: Finanstilsynet expects banks to refrain from dividend distributions and share repurchases until at least January 1, 2021. September 24: Ministry of Finance has decided not to change the countercyclical capital buffer requirement of 1% for banks. Norges Bank does not expect to advise the Ministry to increase the buffer rate again until 2021 Q1 at the earliest. December 17: Ministry of Finance has decided not to change the

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures countercyclical capital buffer requirement of 1% for banks. December 18: Finanstilsynet endorsed ESRB and EBA’s recent announcements on dividend restrictions. December 21: Finanstilsynet gave further details on how banks should comply with the ESRB’s recommendations on dividends.

2021 January 20: Ministry of Finance expects banks to keep their total distributions within a maximum of 30% of cumulative annual profits until September 30, 2021. March 18: Ministry of Finance has decided not to change the countercyclical capital buffer requirement of 1% for banks. June 17: Ministry of Finance has decided that the countercyclical capital buffer requirement for banks shall be increased to 1.5% from June 30, 2022. September 7: Ministry of Finance announced that banks may distribute profits in accordance with the regular framework for

Russia 2020 2020 2020 2020 2020 March 20: Bank of Russia March 20: Bank of Russia offered March 20: Bank of Russia entitled March 20: Bank of Russia June 26: Bank of Russia said it will maintained the countercyclical easier conditions for providing credit institutions not to recognize postponed several amendments start to cancel the regulatory capital buffer at 0%. irrevocable credit lines in certain loans as restructured for to prudential regulations as well easing related to reporting it gave March 20: Bank of Russia noted accordance with the liquidity the purpose of creating reserves as a range of supervisory to banks earlier in the pandemic that capital conservation and coverage ratio until April 1, 2021. and not to apply macroprudential activities. and restart inspections. systemically important capital March 27: Bank of Russia made add-ons to such loans until March 31: Bank of Russia buffers can be used, if banks the decision that until 30 September 30, 2020. announced that they hold open comply with the set limits for the September 2020 a reduction in March 20: Bank of Russia entitled the possibility of earlier share of profits to be distributed, the actual value of the liquidity credit institutions to recognize implementation of Basel including dividend payouts and coverage ratio shall not be certain equity and debt securities Standards which assist Russian compensations to be paid to deemed to be a violation of the at fair value for accounting credit institutions’ needs. management. ratio, if this was caused by a purposes. April 16: Bank of Russia delayed March 20: Bank of Russia reduced shortage of highly liquid assets or April 10: Bank of Russia approved the deadlines for filing certain add-ons to mortgage risk weights other alternative instruments due additional measures including securities documents. for those issued after April 1, to limited possibilities to extend allowing credit institutions to use April 17: Bank of Russia plans to 2020. or raise borrowings for more than assessments made as of 1 January implement the provisions on the June 19: Bank of Russia retains 30 calendar days. 2020 for balance sheet assets and assessment of mortgage loan risks national countercyclical capital for loan loss provisioning on loans by mid-2020. Risk ratios for buffer and risk-weight add-ons. standard mortgage loans with the of which security assets were December 18: Bank of Russia LTV below 100% and eligible classified under Quality Category I retains national countercyclical levels of the debt-to-income capital buffer and risk-weight add- and II. indicator will be set in the 20-50% ons. April 17: Bank of Russia allowed range. credit institutions not to

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures categorize loans as restructured June 11: Bank of Russia approved 2021 over the period from 1 March a rule to adjust the procedure and March 19: Bank of Russia retained through 30 September 2020 for timeframe for certain reporting the national countercyclical the purposes of applying risk- standards in light of COVID-19. capital buffer and risk-weight add- based buffers in the course of ons. loan debt restructuring. April 23: Bank of Russia

announced its intention to wind 2021 up the earlier introduced regulatory easing as planned and February 17: Bank of Russia to resume the application of the announced it would adjust the previously existing accounting treatment of macroprudential requirements to government guarantees when new loans. calculating required ratios and April 29: Bank of Russia decided reserves. to cancel from 30 June 2021 add- ons on unsecured consumer loans issued before 1 April 2020 and raise risk-weight add-ons on unsecured consumer loans issued from 1 July 2021. July 30: Bank of Russia decided to increase risk-weight add-ons for unsecured consumer loans beginning from 1 October 2021. Saudi Arabia * * * * * Singapore 2020 2020 2020 2020 2020 April 7: MAS encouraged banks to April 7: MAS will reduce the Net April 7: MAS said that when April 7: MAS will provide use their capital buffers but Stable Funding Ratio requirement estimating accounting loan loss additional time for certain

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures specified that they should not be from 50% to 25% until September allowances, banks should take April 7: MAS will defer the regulatory reporting used to fund share buybacks. 30, 2021. into consideration the implementation of Basel III by one requirements. April 7: MAS will allow banks to April 7: MAS revised Notice 652 to government’s measures to boost year in accordance with BCBS. April 7: MAS said it will focus its recognize more of their regulatory reflect its announced changes on the economy in light of COVID-19. April 7: MAS will defer the supervision on how FIs are loss allowance reserves as capital the Net Stable Funding Ratio and April 7: MAS said it does not implementation of the final two managing the impact of COVID- until September 30, 2021. provide additional details. expect banks to maintain higher phases of the margin 19. July 29: MAS called on banks to accounting loan loss allowances requirements for non-centrally April 16: MOF, IRAS, and MAS cap their dividends for FY2020 at just because relief measures are cleared derivatives, in accordance announced measures to provide 60% of dividends from FY2019. applied to those loans. with BCBS and IOSCO. real estate investment trusts with August 7: MAS called on finance April 7: MAS will defer several greater flexibility including companies to cap their dividends new policies it planned to extension of the deadline for for FY2020 at 60% of dividends implement. distribution of taxable income, as from FY2019. April 7: ACRA said it will grant 60- well as a raising of the leverage day extensions for holding annual limit and deferment of new 2021 general meetings and filing regulatory requirements. July 28: MAS lifted dividend returns. restrictions on local banks and finance companies. South Africa 2020 2020 2020 2020 2020 March 28: South African Reserve March 31: South African Reserve March 26: South African Reserve April 9: South African Reserve May 12: South Africa Reserve Bank proposed to temporarily Bank decided to amend the Bank issued a guidance note with Bank said regulatory reporting Bank released a statement to reduced the Pillar 2A minimum minimum requirements relating advice on the application of IFRS 9 timelines remain in place, with a indicate their regulatory and capital requirement (systemic risk to the liquidity coverage ratio to in response to COVID-19. few exceptions. supervisory priorities during buffer) to zero. Banks will also be provide temporary liquidity relief March 28: South African Reserve June 24: South African Reserve COVID-19. allowed to utilize their capital to banks. Bank proposed directives related Bank proposed revised conservation buffer. However, the April 6: South African Reserve to the treatment of restructured implementation dates for certain banks are not intended to Bank lowered the liquidity credit exposures. regulatory reforms. distribute earnings in the form of coverage ratio to 80% from 100% April 6: South African Reserve dividends or bonuses. for the duration of the crisis. Bank announced it has provided

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures April 6: South African Reserve 2021 guidance to the banking industry Bank is temporarily amending September 2: South African on how IFRS 9 could be Directive 7 of 2015 for loans Reserve Bank proposed a implemented during this period of restructured as a result of the withdrawal of the temporary volatility and stress. impact of COVID-19 to not attract relief measure related to the May 29: South African Reserve a higher capital charge for the liquidity coverage ratio. Bank issued Guidance Note on duration of the crisis. matters relating to the application April 6: South African Reserve of IFRS 9 in response to Covid-19. Bank lowered Pillar 2A capital buffer to zero. They also provided minimum capital conservation buffer banks should maintain. April 6: South African Reserve Bank issued a guidance note advising banks not to distribute discretionary ordinary dividends and put hold on bonuses for senior executives for at least 2020.

2021 February 18: South African Reserve Bank issued a guidance note with its expectation that banks use careful consideration when making distributions of dividends on ordinary shares and the payment of cash bonuses

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures to executive officers and material risk takers throughout 2021. September 3: South African Reserve Bank proposed a withdrawal of the temporary treatment of restructured credit exposures due to the Covid-19 pandemic. South Korea 2020 2020 2020 2020 2020 April 17: FSC said it will April 6: FSC said it will work to April 13: FSC recommended April 20: FSC said it would March 13: FSC announced that temporarily ease capital help ease regulatory burdens flexibility in the application of IFRS postpone the implementation of the government will tighten requirements for banks helping stemming from liquidity coverage 9 for calculating expected credit the large exposures framework regulations on stock short-selling provide emergency COVID-19 ratio and loan-to-deposit ratio losses and including the relief until after 2021. for three months beginning on support. requirements. measures taken by the April 20: FSC will early adopt the March 10. April 20: FSC released details on April 17: FSC said it will government in calculations. Basel III credit risk framework in April 20: FSC confirmed that there capital adequacy easing including temporarily ease liquidity late June this year which will will be no penalties or April 20: FSC permitted all allowing banks to assign a 100 requirements for banks helping increase domestic banks’ average administrative sanctions for financial institutions to apply the percent risk weight to provide emergency COVID-19 BIS ratio by 0.8 percentage points. failing to meet disclosure or contributions to the stock market support. existing asset quality standards May 6: FSC said it would postpone business report deadlines. stabilization fund and easing April 20: FSC will work to lower without the need to raise the implementation of margin May 13: FSC announced an standards for calculating firms’ the foreign currency LCR from 80 additional capital reserves and requirements for non-centrally extension of reporting deadlines net capital ratio temporarily for percent to 70 percent and total consider accrued interest as cleared OTC derivatives by one until August 31 for financial newly issued business loans. LCR from 100 percent to 85 interest revenue for accounting year, in accordance with BCBS and companies’ overseas branches April 20: FSC temporarily lifted percent by the end of September. purposes. IOSCO. that face compliance burdens due the credit extension cap for April 20: FSC said it will not to COVID-19. subsidiaries of the same holding sanction firms that deviate from August 27: FSC announced that it company to 30%. the loan-to-deposit ratio by up to would extend the temporary ban 5 percentage points until June on stock short sales for six months 2021 2021. from September 16, 2020 to March 15, 2021.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures January 28: FSC recommended banks temporarily limit dividends 2021 to 20% of their net profits through January 19: FSC announced its June 2021. 2021 Work Plan which included March 9: FSC decided to extend the goal of rolling back certain certain capital measures regulatory measures. announced in April 17 last year. February 3: FSC announced the June 25: FSC announced to expire decision to extend the short- banks’ dividend restriction as of selling ban until May 2, 2021. June 30. Spain 2020 * 2020 * 2020 March 27: Banco de España March 30: Banco de España March 16: CNMV temporarily applies the ECB recommendation releases a briefing note stating banned the creation of net short on dividend distribution to the that they adopt the measures positions. credit institutions under its notified by the ECB and extends April 6: Banco de España supervision. them to all the financial announced they will monitor March 31: Banco de España holds institutions over which it exercises compliance with regulations and the countercyclical buffer at 0%. direct supervisory powers. good banking practices in the May 6: Banco de España said they April 3: Banco de España concession of ICO guarantees. will apply the flexibility available disclosed a FAQ about the use of in the regulations on minimum April 15: CNMV agreed to extend the flexibility provided in the requirements for own funds and for a further month the ban on accounting regulations. eligible liabilities (MREL) to the transactions in securities and June 16: Banco de España allowed setting of transition periods and financial instruments that involve for greater flexibility in applying the intermediate MREL targets. the creation or increase of net expert judgement for the credit- June 29: Banco de España decided short positions in shares. risk classification of forborne to hold the countercyclical buffer April 17: CNMV issued an FAQ on exposures. at 0%. its ban of net short positions.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures July 28: Banco de España May 18: CNMV decided not to recommended that until January renew the current prohibition to 1, 2021, less significant create or increase net institutions should not pay out short positions. dividends or assume irrevocable June 16: Banco de España commitments to pay them in announced amendments to 2020. It further recommends that financial reporting rules to allow they should not make share buy- for greater flexibility. backs or adopt any other measures to remunerate their shareholders in cash. September 25: Banco de España held the countercyclical capital buffer at 0%. December 15: Banco de España applied the ECB’s recommendation on limiting capital distributions. December 21: Banco de España held the CCyB at 0% for Q1 2021.

2021 March 24: Banco de España held the CCyB at 0% for Q2 2021. July 23: Banco de España decided not to extend beyond September 2021 its recommendation on dividend distributions and variable remuneration.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures Sweden 2020 2020 2020 * 2020 March 13: FI lowered the March 16: FI clarified that it will March 17: FI considers the loss of April 1: FI announced that Credit countercyclical capital buffer rate temporarily allow banks to fall income associated with COVID-19 institutions and securities from 2.5% to 0% to support banks below the liquidity coverage ratio to qualify as special grounds to companies can agree with FI on in extending credit facilities to for currencies. reduce or suspend amortization deferral of reporting for up to one customers. payments for a limited period of month but not for Liquidity March 13: FI expects banks not to time. coverage and liquidity reporting increase their dividends and will April 2: FI said that banks can give follow up on this in its supervision mortgage borrowers exemptions of banks. from amortization requirements. March 26: FI sent letters to all banks and credit market 2021 companies urging their boards of August 23: FI announced that directors to immediately resolve temporally exemptions to not to pay dividends. mortgage amortization will end June 3: FI decided to keep the on August 31, 2021. countercyclical capital buffer at 0%. September 1: FI said that banks should suspend dividend payments for the rest of 2020. November 11: FI repeated its message to banks to not make any dividend payments in 2020. December 18: FI expects banks to restrict dividend payments through September 30, 2021.

2021

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures March 22: FI said it will keep the countercyclical capital buffer at 0% until at least Q3 2021. August 20: FI will not extend its recommendation regarding dividends after September 30, 2021. September 9: FI intends to raise the countercyclical buffer rate to 1 per cent in Q3 2021. Switzerland 2020 2020 2020 2020 2020 March 25: FINMA will allow banks March 19: FINMA confirmed that March 31: FINMA calls on banks April 14: FINMA is extending the April 7: FINMA issued guidance on to calculate their leverage ratio liquidity buffers are there to be to take into account the "IFRS 9 deadline for completing the final financial accounting and internal without central bank reserves used as necessary. and covid-19" document two implementation phases of risk reporting. until July 1. March 31: FINMA issued guidance published by the IASB on 27 the margin requirements for non- March 25: FINMA supports the on liquidity coverage ratio March 2020 and emphasizes that centrally cleared OTC derivatives decision to suspend share calculations taking into account banks may make use of the for one year. buybacks and encourages banks the SNB COVID-19 refinancing flexibility provided by IFRS 9. to carefully consider the level of facility. March 31: FINMA further notes dividend distributions. May 19: FINMA set out in more that the support measures taken March 27: Federal Council detail the handling of durations by authorities and governments deactivated the countercyclical for loans procured as part of the should be incorporated in their capital buffer (hence 0%) SNB’s COVID-19 refinancing forward-looking considerations of following recommendations by facility for calculating the net ECL estimates. In addition, Swiss National Bank and FINMA. stable funding ratio. measures such as payment March 31: FINMA issued guidance deferrals should not automatically on capital requirements for result in a transfer of a credit to COVID-19 credits with federal another stage in the IFRS 9 guarantees. categorization.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures March 31: FINMA issued exemptions relating to leverage ratio and risk diversification. April 7: FINMA issued guidance on reduction of the relief in the leverage ratio calculation in the event of dividend distributions. April 9: FINMA releases a statement welcoming the decisions made by some banks to postpone half their dividend distributions. April 14: FINMA issued a temporary exemption concerning backtesting results in the model approach to market risk until July 1. May 19: FINMA extended the exemption for the calculation of the leverage ratio (exclusion of central bank reserves) for all banks until January 1, 2021. Exemptions for risk diversification were not extended. Turkey * 2020 * * 2020 March 26: Turkish authorities are March 17: TCMB announced FX providing flexibility for liquidity reserve requirement ratios will be ratios until the end of 2020. reduced by 500 basis points.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures March 23: CMB announced a ban on short selling. March 23: CMB said certain reporting requirements may be delayed. United 2020 2020 2020 2020 2020 Kingdom March 11: Bank of England March 11: Band of England March 20: PRA issued guidance March 17: FCA extended the March 11: Bank of England invited lowered the countercyclical reinforced the expectation that on impact of COVID-19 on ECL closing date for responses to open requests from insurance capital buffer rate from 1% to 0% liquidity buffers can be drawn estimates under IFRS 9. The PRA consultations until October 1, companies to use the flexibility in to support banks in extending down as necessary to support the expects the eligibility for the 2020 and rescheduled most other Solvency II regulations to credit facilities to customers. Also economy through the shock. extension of mortgage repayment planned work. recalculate the transitional reinforced the expectation that all April 20: PRA published an FAQ holidays should not automatically March 20: PRA said it understands measures that smooth the impact elements of capital buffers can be on the usability of liquidity buffers be a sufficient condition to move that the current Basel III of market movements. drawn down as necessary to and their operation. participating borrowers into Stage implementation schedule may March 20: Bank of England support the economy through the 2 ECL. prove to be challenging and is cancelled the annual cyclical shock. March 26: Joint statement by coordinating with other stress tests for the eight major UK March 11: Bank of England set FCA, FRC and PRA including jurisdictions to proceed in banks, and paused an exploratory out a supervisory expectation that guidance on application of IFRS9 alignment with them. liquidity stress test that was due banks should not increase capital and flexibility on meeting March 20: Bank of England and to be completed by mid-2020. distributions in response to recent reporting timelines. PRA state they will review their March 23: PRA said it will accept policy actions. March 26: The PRA published a program of regulatory change and delays of between two and eight March 26: PRA published a letter letter to banks including postpone non-critical work, where weeks for Solvency II harmonized to banks including application of application of IFRS 9 and flexibility appropriate. For example, reporting and PRA-owned IFRS 9 for regulatory capital in terms of application of loan operational resilience regulatory reporting. purposes including transitional covenants and recognition of consultation deadline extended March 25: FCA said that firms arrangements. default. by 6 months. should still assume that the LIBOR March 30: PRA have announced a May 22: PRA released a April 2: PRA and HMT issued a transition will occur at the end of temporary adjustment to market statement on application of IFRS 9 statement supporting BCBS’s 2021. But UK will coordinate with risk capital requirement in light of COVID-19. deferral of the Basel III timeline international authorities to calculations to reduce pro- and announcing that they would monitor and assess the impact on

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures cyclicality. PRA also made a June 4: PRA issued a letter stating implement in accordance with the transition timelines and will statement explaining the approach guidance on treatment of COVID- new deadline. update the market as soon as for applying the internal models 19 related payment deferrals April 9: PRA issued an update on possible. method for counterparty credit risk under IFRS 9 and the Capital the deferral of certain reporting March 25: HM Treasury has exposures. Requirements Regulation (CRR). deadlines. written to banks to endorse March 31: PRA said it welcomed June 30: PRA released a May 7: Bank of England and PRA measures taken by regulators and the decisions of large UK banks to statement on the CRR ‘Quick Fix’ extended deadlines for certain encouraging banks to extend suspend dividends and share package clarifying UK treatment resolution related reporting. They credit facilities and support buybacks and encouraged them of IFRS9. also clarified that firms will be customers. to suspend bonuses as well. August 26: PRA clarified its given 36-month transition period March 31: FCA published a letter April 9: PRA announced its approach to IFRS 9 and capital before for a leverage-based to CEOs laying out various decision to maintain firms requirements in relation to capital requirement becomes in regulatory and reporting updates. Systematic Risk Buffer rates at the mortage payment deferrals. effect. April 2: PRA released a statement rate set in December 2019, in regarding its views on regulatory response to the economic shock reporting and Pillar 3 disclosures from Covid-19. in response to COVID-19. April 20: PRA published an FAQ April 6: FCA and PRA issued a joint on the usability of capital buffers statement clarifying requirements in the governance and notification and their operation. arrangements under the Senior April 27: Bank of England Manager and Certification provided some clarity on Regime. regulatory treatment of the UK April 6: FCA have issued a release Coronavirus Business Interruption allowing funds to delay producing Loan Scheme (CBILS) and the UK annual and half-yearly reports. Coronavirus Large Business The release also provides Interruption Loan Scheme guidance in relation to (CLBILS) which may allow firms to compliance with limits on VaR in adjust risk weights and expected their risk-management processes. loss amounts.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures May 4: PRA said in a statement April 9: PRA released its that exposures under the Bounce 2020/2021 Business Plan, Back Loan scheme are eligible for including acknowledgment that credit risk mitigation. COVID-19 has caused many May 4: PRA gave banks changes to the sector and permission to exclude loans under assurance that it would continue working to ensure stability and the Bounce Back Loan scheme resiliency. from the leverage ratio total April 22: FCA released a series of exposure measure. one- and two-month extensions May 7: PRA decided to set Pillar for regulatory filings. 2A as a nominal amount in the April 29: FCA recommended some 2020 and 2021 Supervisory changes to firms’ LIBOR transition Review and Evaluation Processes plans including deferral for at (SREPs). least a quarter of complete May 29: PRA released a Q&A on transition away from LIBOR, Capital Requirements Regulation which was originally targeted for (CRR) requirements for property end-Q3. valuations. May 7: PRA announced details of July 28: PRA issued a statement in its priorities in light of COVID-19 response to the ECB’s including climate change, the announcement on dividend LIBOR transition, and treatment payments and said it would assess of stress VAR. firms’ distribution plans for 2021 June 8: Bank of England and PRA in Q4 of 2020. released a joint statement on the August 27: PRA decided to ESRB recommendations for the terminate its temporary approach restriction of distributions during to VAR back-testing exceptions the COVID-19 pandemic and beginning on September 30 given clarified that this the CRR Quick Fix. recommendation applies to UK

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures December 7: PRA decided to authorities during the transition maintain firms’ Systemic Risk period in the context of the UK’s Buffer rates at the rate set in withdrawal from the EU. December 2019 until December June 24: PRA announced that it 2022, with no rate changes taking will not extend the supervisory effect until January 2024. reporting elements of the EBA December 10: PRA said it Guidelines on COVID-19 reporting wouldn’t extend its decision that and disclosure published on June banks should restrict dividends 2 to UK credit institutions. and stock buybacks but released June 26: PRA announced that it guidelines for capital distributions will generally expect on-time in 2020. submission for future regulatory reporting, reversing a previous statement from April 2. June 30: PRA released a statement on the CRR ‘Quick Fix’ package clarifying that further research will be needed to determine the UK’s approach. July 10: PRA revised and updated its view on supervisory reporting elements of the EBA Guidelines on COVID-19 reporting and disclosure. July 28: PRA released guidelines and modifications for disclosures as required by the EBA. September 18: PRA updated its regulatory priorities which were originally announced on May 7.

Provisioning, Definition of Consultations/ Other (reporting, stress Jurisdiction Capital Liquidity Default and NPL-related Implementation Timetables testing, conduct, etc.) measures

2021 February 5: PRA provided an update on reporting guidelines in response to COVID-19 and will accept a two-month delay for certain reports. April 27: PRA announced to use the disclosure templates published on July 28, 2020, for semi-annual disclosure until December 31, 2021. May 7: PRA updated its regulatory priorities which were last updated on September 18.