Press Release - 25 March 2020 - EBA provides clarity to banks and consumers on the application of the prudential framework in light of COVID-19 measures
- The EBA calls for flexibility and pragmatism in the application of the prudential framework and clarifies that, in case of debt moratoria, there is no automatic classification in default, forborne, or IFRS9 status.
- The EBA, nonetheless, insists on the importance of adequate risk measurement and expects institutions to prioritise individual assessments of obligors’ likeliness to pay when possible.