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COVID-19 - Impact on Financial Sector - 22 June 2020


Please find below a summary of  COVID-19 developments of last week (15/6 until 19/6 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

Freya Mareels 
+32 475 25 11 50

Wim Dedecker
+32 491 36 03 99



Chamber approves tax-free corona reserve for companies


The Chamber has approved a bill that creates a tax-free corona reserve, in order to strengthen both the solvency and the liquidity of companies during the Covid-19 crisis.

Companies and self-employed persons will be able to use a ‘carry-back’ mechanism to offset their losses of 2020 against the profits of 2019. This mechanism will allow to recover (part of) the prepayments and will thus considerably temper the tax bill for income year 2019. 


EBA extends deadline for the application of its Guidelines on payment moratoria to 30 September


The EBA extends the application date of its Guidelines on legislative and non-legislative moratoria to 30 September 2020. As EU economies are not yet fully opened, this extension shows the importance of a continued support to the measures taken by banks to extend loans in response to the extraordinary nature of the current situation and should ensure that adequate treatment for borrowers is available across the EU. 


Basel Committee discusses impact of Covid-19 and reiterates guidance on buffers


During its meetings over the past weeks, the Basel Committee has discussed a range of policy issues and has reviewed the impact to date of Covid-19 on the global banking system. The Committee states that the measures that were taken at the onset of the pandemic have helped to mitigate some of the short-term financial stability risks. Importantly, the expectation of full, timely and consistent implementation of all Basel III standards based on the revised timeline endorsed by the Group of Governors and Heads of Supervision was repeated. 

In addition to the Covid-19 matters, the Committee approved: 

  • final revisions to the credit valuation adjustment risk framework (to be published in the coming weeks); and

  • a technical amendment on the prudential treatment of non-performing loan securitisations (to be published for consultation next week)


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