Communication on the application of the accounting and prudential frameworks to facilitate EU bank lending Supporting businesses and households amid COVID-19

Summary:

Interpretative Communication published by the European Commission on 28 April 2020, concerning the European Union's accounting and prudential frameworks.

Further information:

This Communication confirms that banks and their supervisors are allowed to act with flexibility within accounting and prudential rules. The European Commission encouraged banks and supervisory authorities to make use of such flexibility allowed for in the frameworks. The document also highlights areas where banks are invited to act responsibly (in areas such as dividend distributions and remuneration), and recalls how banks can helps businesses and citizens through digital services.

The interpretative communication was published as part of a package on banking matters, which also included a legislative initiative proposing targeted amendments to the Capital Requirements Regulation (CRR).

Official

European Commission: DG Financial Stability, Financial Services and Capital Markets Union: Banking package to facilitate lending to households and businesses in the EU https://ec.europa.eu/info/publications/200428-banking-package-communication_en

European Commission: Press Release, 28/04/2020: Coronavirus Response: Commission adopts banking package to facilitate lending to households and businesses in the EU https://ec.europa.eu/commission/presscorner/detail/en/ip_20_740

European Commission: Questions and Answers, 28/04/2020: Coronavirus response: Banking Package to facilitate bank lending- Supporting households and businesses in the EU https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_757

European Commission: Remarks by Executive Vice-President Dombrovskis at the press conference on the Commission banking package to facilitate lending to households and businesses in the EU (28 April 2020) https://ec.europa.eu/commission/presscorner/detail/en/speech_20_769

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