Regulatory Alerts2019-11-01
Circular 3/2019 of the Bank of Spain on defining the materiality threshold for past-due credit obligations
The Bank of Spain issued Circular 3/2019 to establish the materiality threshold for past-due credit obligations for less significant credit entities under its direct supervision, fulfilling the mandate of Regulation (EU) No 575/2013. The circular defines materiality based on absolute thresholds of 100 euros for retail exposures and 500 euros for non-retail exposures, alongside a relative threshold of 1% of total exposures. Credit institutions are required to notify the Bank of Spain of their implementation dates by December 31, 2019, and apply the new thresholds no later than December 31, 2020.
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