Regulatory Alerts2020-03-16
Added · Updated
Circular Letter No. CC/2020/00000017: Regulatory and Supervisory Flexibility Measures for COVID-19 Contingency Relief
The Banco de Portugal temporarily relaxes capital and liquidity requirements for less significant credit institutions, allowing them to operate below Pillar 2 Guidance and LCR standards, while prohibiting the use of this flexibility for dividend or variable remuneration increases. The regulator suspends or delays stress tests, inspections, SREP information requests, and various regulatory reporting deadlines, extending specific submission dates to May, July, or August 2020 depending on the report type. Response times for customer complaints are extended to 30 and 10 business days for direct complaints and additional information requests, respectively, and expired identification documents are accepted for account opening. Institutions are required to review contingency plans, mitigate operational risks, and immediately report significant negative impacts or cyber incidents related to the pandemic.