European Banking Authority Prioritizes Supporting Core Bank Operations
03/12/2020The European Banking Authority has published a statement on actions to mitigate the impact of COVID-19 on the EU banking sector. In the statement, the EBA states that it is working with the European Central Bank and EU national regulators to ease the immediate operational burden on EU banks and recommends that national regulators should use, where appropriate, the flexibility embedded in the regulatory framework.
The EBA views supporting banks' focus on core operations as a priority and has decided to postpone the EU-wide stress test to 2021. However, the EBA will conduct an additional EU-wide transparency exercise to provide updated information on banks' exposures and asset quality. The EBA also recommends that national regulators grant some flexibility on the remittance dates for supervisory reporting by banks.
The EBA states that banks should adopt prudent dividend and other distribution policies, including variable remuneration.
View the EBA's statement.
Details of other regulatory responses to COVID-19 are available on our COVID-19 Research Center.
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