EBA has published a report clarifying how certain parts of prudential regulation apply in the light of COVID-19. It says several issues have been drawn to its attention in relation to the effects of payment moratoria and more broadly. The guidance looks at interpretation of certain measures and COVID-19 issues more generally, in particular:
- the COVID-19 operational risk classification scheme
- impact on business continuity
- impact on institutions’ ordinary course of business
- impact on loss events
- impact on credit risk and potential consequences on operational risk and
- impact of implementing novel legislation because of COVID-19