COVID-19 – PRA updates statement on regulatory treatment of CBILS and CLBILS loan schemes
Regulatory Updates | 26/06/20
The Prudential Regulation Authority (PRA) has published an updated statement on the regulatory treatment of the UK Coronavirus Business Interruption Loan Scheme (CBILS) and the UK Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The update relates to the application of credit risk approaches. The PRA provides clarification for:
• firms using the standardised approach for exposures to the obligor;
• firms using the internal ratings based (IRB) approach for exposures to the obligor and the standardised approach for exposures to the guarantor (under permanent partial use or rollout); and
• firms using the IRB approach for exposures to the obligor and the IRB approach for exposures to the guarantor.
