PRA statement on the disclosure of exposures subject to measures applied in response to Covid

This statement updates guidance to UK banks and building societies on the disclosure of exposures subject to Covid measures.
Published on 27 April 2021

PRA update on disclosure of exposures subject to measures applied in response to Covid:

The PRA does not consider it necessary to set an expectation that firms should continue making disclosures on Covid lending  for disclosure periods after Friday 31 December 2021. Firms should undertake their own assessment of whether any such disclosures are required to convey their risk profile comprehensively to market participants for the purposes of PRA rules in Disclosure (CRR) Article 431.

On Tuesday 28 July 2020, the PRA issued a statement providing guidance on the disclosure of exposures subject to measures applied in response to the Covid crisis.

It highlighted that UK banks and building societies (firms) that: (i) are, or are controlled by, global systemically important institutions (G-SIIs) or other systemically important institutions (O-SIIs) designated by the PRA in the most recent list; and (ii) have retail deposits equal to or greater than £50 billion on an individual or consolidated basis, should make disclosures on Covid lending for the highest level of consolidation in the UK for semi-annual disclosure periods ending on dates up to, and including, Thursday 31 December 2020. The PRA noted in that statement that it would keep the approach for disclosure periods after this date under review.

Given the continued use of Covid support measures in lending by UK firms, the PRA continues to see substantial benefit to its objectives in the disclosure of information on the effects of the measures that UK firms have taken in response to Covid.

Firms should therefore continue to use the templates published with the PRA’s statement on Tuesday 28 July 2020 for semi-annual disclosure reference dates up to, and including, Friday 31 December 2021. 

Timing of disclosure

Firms may continue to disclose on a semi-annual basis as at Wednesday 30 June 2021 and Friday 31 December 2021. Firms may also disclose at the half-year and year-end dates for their financial year, if they have an accounting reference date other than Friday 31 December 2021. 

Disclosure templates

These remain unchanged from the versions issued by the PRA on Tuesday 28 July 2020.

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