Regulatory Alerts2021-10-28
D7/2021 Withdrawal of the Temporary Treatment of Restructured Credit Exposures Due to the Covid-19 Pandemic
The Prudential Authority issued Directive D7/2021 to withdraw the temporary capital relief for Covid-19 related credit restructures, effective 1 April 2022. Banks must cease applying the D3/2020 treatment to new or re-applied exposures from 1 January 2022, while existing active restructures may retain the temporary classification until 31 March 2022 before being formally reclassified as distressed. Financial institutions must continue submitting the designated monthly reporting template through March 2022, or confirm zero active exposures, to maintain transparency and sound risk management practices.
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