Regulatory Alerts1998-12-08 | D1/34Added · Updated
Circular D1/3427: Aspects of the Euro Transition from Solvency and Accounting Perspectives
Credit institutions must treat participating euro currencies as distinct currencies for solvency and reporting purposes until December 31, 1998, prohibiting the anticipation of euro conversion rates in regulatory capital calculations during this period. While public annual reports may optionally anticipate the euro for ratio calculations if the numerical impact is disclosed, regulatory reporting strictly forbids such anticipation. The Commission will consider the positive solvency impact of the euro transition when assessing capital deficiencies existing on December 31, 1998. Additionally, the derogatory regime for interest rate forward transactions in ALM, previously applied to Belgian francs, extends to euro-denominated balance sheets starting January 1, 1999.
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