Circular Letter No. CC/2020/00000064: Guidelines on Loan Origination and Monitoring

Circular Letter No. CC/2020/00000064 Sent to: Credit Institutions. Mod. 40000375/T – 01/14 Subject: Guidelines on the granting and monitoring of loans (EBA/GL/2020/06)

The European Banking Authority (EBA) published on May 29, 2020, the document titled “Guidelines on loan origination and monitoring (EBA/GL/2020/06)” which will enter into force on June 30, 2021, and which can be consulted via its respective website1.

The aforementioned document contains a broad set of guidelines and recommendations related to credit granting and monitoring and their respective internal governance mechanisms.

Credit institutions supervised by the Bank of Portugal should, from now on, adopt the necessary measures to comply with the aforementioned Guidelines starting from June 30, 2021.

The Bank of Portugal emphasizes the importance of institutions giving adequate compliance to the guideline lines contained in the document in question, which must be followed and applied in the context of current legislation and regulation, and in particular, function as a complement to the provisions contained in the General Regime of Credit Institutions and Financial Companies regarding the matters in question.

1 https://eba.europa.eu/sites/default/documents/files/document_library/Publications/Guidelines/2020/Guidelines%20on%20loan%20originatio n%20and%20monitoring/Translations/886691/Final%20Report%20on%20GL%20on%20loan%20origination%20and%20monitoring_COR_PT.pdf