Additional flexibility measures related to the COVID-19 pandemic

Circular Letter No. CC/2020/00000028 Sent to: Credit Institutions; Investment Firms; Financial Companies; Social Participation Management Companies; Payment Institutions and Electronic Money Institutions. Mod. 40000375/T – 01/14 Subject: Additional flexibility measures related to the COVID-19 pandemic Banco de Portugal, recognizing the continuous challenges institutions face in the current context of the COVID-19 pandemic and supporting the decisions communicated by the European Central Bank (ECB) and the European Banking Authority (EBA), hereby transmits additional flexibility related to information reporting 1. Given the current economic context, financial and prudential information is of particular importance, so the quality and timeliness of information reporting to Banco de Portugal is particularly significant and valued. Nevertheless, and in line with the EBA communication 2 and the approach defined by the ECB for significant institutions 3, Banco de Portugal considers it appropriate, based on a judgment of its criticality for the exercise of various functions, that the submission deadline may be extended or that the current contingency context may be accepted as a valid reason, when necessary, for the eventual non-compliance with the fixed deadlines, in the following cases: a) Notice No. 2/2016 (reporting of financial information, on an individual basis), Instruction No. 5/2017 (reporting of information for supervisory purposes applicable to financial companies) with deadlines of May 12, 2020: submission permitted until June 12, 2020; b) Instruction No. 14/2006 (information on companies included in the scope of consolidation) and Instruction No. 2/2007 (information on the evolution of the credit portfolio) with deadlines of April 30, 2020: submission permitted until June 12, 2020; c) Commission Implementing Regulation (EU) No 680/2014 4 of April 16, 2014, with deadlines of May 12, 2020: submission permitted until June 12, 2020. Excluded from this deadline extension are the monthly reports for “Liquidity Coverage Ratio” (LCR) and “Additional Liquidity Monitoring Metrics” (ALMM), which must be submitted according to the deadlines currently in force; d) Reporting of Funding Plans (EBA/GL/2019/05), due March 31, 2020: submission permitted until May 31, 2020.

1 In addition to previous measures related to information reporting already communicated in Circular Letters Nos. CC/2020/00000017 and CC/2020/00000021. 2 See EBA communication. 3 See ECB communication. 4 Financial information (FINREP), Own funds, losses stemming from lending collateralised by immovable property, leverage ratio (COREP_OF and COREP_LR), large exposures (LE), Net Stable Funding requirements (NSFR), asset encumbrance (AE).

Mod. 40000375/T – 01/14 It is also noted that the administrative or supervisory body of these entities must communicate to Banco de Portugal, at all times and regardless of reporting deadlines, the occurrence of events with relevant negative impact on their financial or prudential situation. Following this Circular Letter, Banco de Portugal will adopt the regulatory and administrative acts that prove necessary.