Summary
The European Parliament has agreed not to object to a temporary regulation that adjusts how banks calculate asset valuations. This measure aims to provide capital relief to help banks manage market volatility caused by COVID-19. 9 17.06.2020
Other
finance
economy
financial institutions and credit
Key points
In force from 28/05/2020 Out of force from 31/12/2020
- The regulation introduces temporary changes to the banking framework to address the COVID-19 pandemic's impact.
- The aggregation factor used to calculate additional valuation adjustments is increased from 50% to 66%.
- This adjustment reduces the amount of capital deducted from a bank's core equity reserves.
- The temporary measure is set to expire on 31 December 2020.
Documents (PDFs)
RECOMMENDATION FOR A DECISION to raise no objections to the Commission delegated regulation of 28 May 2020 amending Delegated Regulation (EU) 2016/101 of 26 October 2015 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for prudent valuation under Article 105(14) of Regulation (EU) No 575/2013
Non-objection to a delegated act: regulatory technical standards for prudent valuation
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