EBA Statement on the application of the prudential framework regarding Default, Forbearance and IFRS9 in light of COVID19 measures
Industry News | 25/03/20
The European Banking Authority (EBA) has published a Statement on the application of the prudential framework regarding Default, Forbearance and IFRS9 in light of COVID19 measures, in which it states its support for the measures taken and proposed by national governments and EU bodies to address the adverse systemic impact of COVID-19, in the form of payment holidays. With regard to these, the EBA seeks to clarify a number of aspects on the functioning of the prudential framework with the aim to provide clarity to the EU banking sector on how to handle, in a consistent manner, aspects related to:
• the classification of loans in default;
• the identification of forborne exposures
• the accounting treatment.
