Circular Letter No. CC/2020/00000059

Circular Letter No. CC/2020/00000059 Sent to: Credit Institutions. Mod. 40000375/T – 01/14 Subject: Guidelines regarding reporting for supervisory purposes and disclosure requirements in compliance with the 'quick-fix' solution of Regulation (EU) No 2020/873 of the European Parliament and of the Council of 24 June 2020, in response to the COVID-19 pandemic

The European Banking Authority (“European Banking Authority” – EBA) published, on 11 August 2020, the “Guidelines on supervisory reporting and disclosure requirements in compliance with the ‘quick-fix’ solution of Regulation (EU) 2020/873 of the European Parliament and of the Council of 24 June 2020, in response to the COVID-19 pandemic” (EBA/GL/2020/11) (hereinafter “Guidelines”), which can be consulted on the EBA website1.

These Guidelines are addressed to competent authorities2 and credit institutions3 and follow the publication of Regulation (EU) No 2020/873 of the European Parliament and of the Council of 24 June 2020 (CRR “quick-fix”), which introduced various amendments to the Capital Requirements Regulation (CRR)4 and to Regulation (EU) No 2019/876 of the European Parliament and of the Council.

The CRR “quick-fix” established, among other measures intended to mitigate the impact of the pandemic on institutions in EU Member States, temporary measures intended to increase credit flows to businesses and households. At the same time, the CRR “quick-fix” also introduced various amendments to the regulatory requirements applicable to institutions, which have effects on compliance with the disclosure and supervisory reporting obligations established by Commission Implementing Regulation (EU) No 680/2014 of 16 April 2014, namely in the reporting taxonomies v2.9 and v.2.10.

1 https://eba.europa.eu/regulation-and-policy/supervisory-reporting/guidelines-supervisory-reporting-and-disclosure-requirements-compliance-crr-%E2%80%9Cquick-fix%E2%80%9D-response. 2 In the meaning of Article 4(2)(i) of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010. 3 In the meaning of Article 4(1)(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 (CRR). 4 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013.

Mod. 40000375/T – 01/14 In this context, the EBA issued the Guidelines with the aim of providing institutions with the necessary clarifications for the implementation of the aforementioned reporting and disclosure requirements, namely with regard to the templates related to credit risk reporting, market risk, own funds and leverage ratio, as well as disclosure of the leverage ratio.

The Guidelines entered into force on 11 August 2020, and the Banco de Portugal communicated to the EBA its intention to comply with them. This communication implies, therefore, that from that date the Banco de Portugal incorporated the content of the Guidelines into the exercise of its supervisory activity.

It is also emphasized that, with regard to reporting duties, the Guidelines are applicable until the reference date of 31 May 2021 (inclusive). On the other hand, and with regard to compliance with disclosure requirements, the Guidelines are applicable until the last annual disclosure reference date prior to 28 June 2021 (inclusive).

In view of the above, and in the exercise of the competence attributed to it by Article 17 of its Organic Law, approved by Law No. 5/98 of 31 January, the Banco de Portugal transmits to the credit institutions supervised by it its expectation that the reporting and disclosure obligations referred to in the Guidelines identified above are complied with in accordance with them, from the reference date of 30 September 2020 (inclusive).