Regulatory Alerts2020-04-01
Added · Updated
Circular Letter No. CC/2020/00000021: Flexibilization Measures and Additional Recommendations Related to the COVID-19 Pandemic
The Banco de Portugal grants temporary flexibility to less significant credit institutions regarding capital and liquidity buffers, extending the deadline for submitting capital conservation plans from 5 to 10 business days and allowing liquidity coverage ratio (LCR) reports to be submitted within 5 business days of notification. The regulator recommends that these institutions refrain from distributing dividends for the 2019 fiscal year and interim dividends for 2020 until at least October 1, 2020, while also suspending share buybacks. Additionally, the document extends various administrative deadlines, including those for regulatory reporting, Pillar 3 disclosures, and professional training validity, and suspends specific procedural timeframes related to authorization processes and agency closures.