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COVID-19 - Impact on Financial Sector - 6 April 2020

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06/04/2020

Please find below a summary of COVID-19 developments relevant to our clients; 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

 

3/04/2020

IOSCO Statement on Application of Accounting Standards during the COVID-19 Outbreak

IOCSO supports a coordinated approach to the oversight of global markets, particularly in light of the COVID-19 outbreak. Accordingly, IOSCO has been closely engaged with the IASB and other regulators regarding the application of IFRS 9 in this context and welcomes the media releases and educational materials of these institutions as well as the expressions of support for the consistent and robust application of IFRS 9. Finally, IOSCO has confirmed its support for consistent implementation of the standards produced by independent standards setters and for the cooperative enforcement of those standards, which are of critical importance to the proper functioning of the capital markets.

3/04/2020

EIB Group moves to scale up economic response to COVID-19 crisis

 

The Board of Directors of the EIB discussed the creation of a €25 billion guarantee fund to enable the EIB Group to scale up its support for companies in all 27 EU Member States by an additional up to €200 billion. This comes on top of an immediate support package of up to €40 billion announced in March. The Board prepared the proposal for the guarantee fund for discussion by the Eurogroup on the 7th of April 2020.

3/04/2020

Basel Committee and IOSCO announce deferral of final implementation phases of the margin requirements for non-centrally cleared derivatives

 

In light of the significant challenges posed by Covid-19, including the displacement of staff and the need for firms to focus resources on managing risks associated with current market volatility, the Basel Committee and IOSCO have agreed to extend the deadline for completing the final two implementation phases of the margin requirements for non-centrally cleared derivatives, by one year. This extension will provide additional operational capacity for firms to respond to the immediate impact of Covid-19 and at the same time, facilitate covered entities to act diligently to comply with the requirements by the revised deadline.

With this extension, the final implementation phase will take place on 1 September 2022, at which point covered entities with an aggregate average notional amount (AANA) of non-centrally cleared derivatives greater than EUR 8 billion will be subject to the requirements. As an intermediate step, from 1 September 2021, covered entities with an AANA of non-centrally cleared derivatives greater than EUR 50 billion will be subject to the requirements.

3/04/2020

Basel Committee sets out additional measures to alleviate the impact of Covid-19

The Basel Committee on Banking Supervision is today setting out additional measures to alleviate the impact of Covid-19 on the global banking system.

Additional measures have been taken with respect to the following sectors: 

(i) extraordinary support measures related to Covid-19;
(ii) expected credit loss accounting; and
(iii) global systematically important banks annual assessment.

These measures support the provision of lending by banks to the real economy and provide additional operational capacity for banks and supervisors to respond to the immediate financial stability priorities. They complement the previous measures published by the Committee's oversight body, the Group of Central Bank Governors and Heads of Supervision.


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