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COVID-19 - Impact on Financial Sector - 13 july 2020

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13/07/2020

Please find below a summary of  COVID-19 developments of last week (6/7 until 10/7 included); these alerts are dedicated to following up on the financial  regulators’ responses to the crisis. We have also created a COVID-19 Resource Center to offer legal and business insights as this crisis continues to evolve. We wish you and your loved ones well.

If you have any questions please feel free to contact: 

Tom Van Dyck
+32 475 90 90 91
t.vandyck@liedekerke.com

Freya Mareels 
+32 475 25 11 50
f.mareels@liedekerke.com

Wim Dedecker
+32 491 36 03 99
w.dedecker@liedekerke.com

 

10/07/2020

Febelfin - SMEs are making full use of new credit lines

 

In its coronamonitor, Febelfin gives an overview of the most recent evolutions in payments and payments delays. 

Please find an overview hereunder: 

  • Belgian banks have granted more than 20,000 new loans to SMEs (with and without a state guarantee) during the last months. Large enterprises also continue to make use of new loans;

  • In addition to granting new credit, Belgian banks also support businesses and households by granting payment deferrals;

  • Belgian citizens have adopted more digital payment habits during the corona crisis, which seems to be a lasting trend. For instance, 35% of all card payments in June were contactless, which is once again an increase of a few percent compared to a month earlier.

   
8/07/2020

Febelfin - Payment deferral for citizens and businesses can be extended until the end of 2020

 

ESMA has issued this statement in the context of financial markets authorities’ recent actions to mitigate the impact of COVID-19 on the EU’s financial markets, to clarify the potential interaction between the intermediation of credit institutions and the requirements of article 35 of the MMF Regulation on external support. It also aims to coordinate the supervisory approaches of national competent authorities (NCAs) in light of  liquidity challenges for MMFs in the context of the pandemic.

 
In the second half of March 2020, certain MMFs faced significant liquidity challenges. In this context, measures taken by central banks and securities and markets regulators to ensure the proper and orderly functioning of markets and financial stability were also relevant for MMFs. In particular, the market liquidity brought by some of these measures may have also indirectly benefited MMFs through the intermediation of credit institutions.

 
ESMA, together with NCAs, will continue to closely monitor the situation and will take or recommend any measures necessary to mitigate the impact of COVID-19.

   
9/07/2020

ESMA clarifies external support within the meaning of article 35 of the Money Market Funds (MMF) Regulation

 

ESMA has issued this statement in the context of financial markets authorities’ recent actions to mitigate the impact of COVID-19 on the EU’s financial markets, to clarify the potential interaction between the intermediation of credit institutions and the requirements of article 35 of the MMF Regulation on external support. It also aims to coordinate the supervisory approaches of national competent authorities (NCAs) in light of  liquidity challenges for MMFs in the context of the pandemic.

 
In the second half of March 2020, certain MMFs faced significant liquidity challenges. In this context, measures taken by central banks and securities and markets regulators to ensure the proper and orderly functioning of markets and financial stability were also relevant for MMFs. In particular, the market liquidity brought by some of these measures may have also indirectly benefited MMFs through the intermediation of credit institutions.

 
ESMA, together with NCAs, will continue to closely monitor the situation and will take or recommend any measures necessary to mitigate the impact of COVID-19.

   
9/07/2020

EBA calls on resolution authorities to consider the impact of COVID-19 on resolution strategies and resolvability assessments

 

The EBA recommends resolution authorities to take into account the impact of COVID-19 on banks and their business models when taking decisions on resolution plans and on the minimum requirement for own funds and eligible liabilities (MREL).

   
8/07/2020

EIOPA clarifies supervisory expectations on product oversight and governance requirements in the context of COVID-19

 

EIOPA asks  insurance companies to review their product oversight and governance measures because of the potential impact COVID-19 can have on products and their utility for customers. EIOPA considers it key that insurance companies respect the fair treatment of customers in their actions responding to the pandemic.

 

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