Circular to Credit Institutions on the EBA Guidelines on Supervisory Reporting and Disclosure Requirements in Compliance with the CRR ‘Quick-Fix’ in response to the COVID-19 Pandemic (EBA/GL/2020/11)

MFSA MALTA FINANCIAL SERVICES AUTHORITY

Circular

22 October 2020

Circular to Credit Institutions on the EBA Guidelines on Supervisory Reporting and Disclosure Requirements in Compliance with the CRR ‘Quick-Fix’ in response to the COVID-19 Pandemic (EBA/GL/2020/11)

The Malta Financial Services Authority (the ‘Authority’) is issuing this circular to bring to the attention of all credit institutions licensed in terms of the Banking Act (Cap. 371 of the Laws of Malta) the European Banking Authority (EBA) Guidelines (EBA/GL/2020/11) on supervisory reporting and disclosure requirements in compliance with the CRR ‘quick fix’ in response to the COVID-19 pandemic (the ‘EBA Guidelines’).

The EBA Guidelines were issued on 11 August 2020 pursuant to the amendments made to the CRR through Regulation (EU) 2020/873 of the European Parliament and of the Council of 24 June 2020 amending Regulations (EU) No 575/2013 and (EU) 2019/876 as regards certain adjustments in response to the COVID-19 pandemic (the CRR ‘quick-fix’). The latter Regulation introduces temporary measures in the CRR that are intended to enhance credit flows to companies and households.

The EBA Guidelines provide credit institutions with the necessary clarifications on how to apply Commission Implementing Regulation (EU) No 680/2014, more specifically versions 2.9 and 2.10, to report elements of credit risk, own funds and leverage ratio set out in the CRR ‘quick fix’, as well as how to apply the Commission Implementing Regulation (EU) 2016/2005 to disclose elements of the leverage ratio set out in the CRR ‘quick-fix’.

Credit institutions licensed in the Banking Act are therefore being required to refer to these EBA Guidelines in fulfilling the relevant reporting and disclosure requirements that fall within the scope of these EBA Guidelines.

The EBA Guidelines are applicable as from their date of publication, 11 August 2020, and until 27 June 2021.

Any queries in relation to this Circular should be directed to Bankingdata@mfsa.mt.

Triq Hmdina, Zone 1 Central Business District, Birkirkara CBD 1010 +356 2144 1155 communications@mfsa.mt www.mfsa.mt