Circular Letter No. CC/2021/00000036

Bank of Portugal determines that exceptional circumstances exist for less significant credit institutions, allowing the temporary exclusion of certain central bank exposures from the leverage ratio exposure measure to facilitate monetary policy. This exemption applies to positions related to the Eurosystem's permanent deposit facility and reserve accounts, including minimum reserve requirements. The determination is effective from December 31, 2019, and the exemption period runs from June 28, 2021, to March 31, 2022.

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Circular Letter No. CC/2021/00000036
Sent to:
Credit Institutions.
Mod. 40000375/T – 01/14
Subject: Determination of the existence of exceptional circumstances for the purposes of altering the calculation of the leverage ratio associated with the exclusion of exposures to central banks

Pursuant to Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June ("Regulation (EU) No 575/2013"), as amended by Regulation (EU) 2020/873 of the European Parliament and of the Council of 24 June 2020, it is permitted to temporarily exclude certain risk positions on central banks from the calculation of the leverage ratio exposure measure, when competent authorities determine that exceptional circumstances exist justifying this in order to facilitate the implementation of monetary policy.

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Source: Banco de Portugal — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works