European Banking Authority (‘EBA’) issues statement on the application of the prudential framework and the implications of COVID-19

The EBA has issued a statement aiming to provide clarity to the EU banking sector on how the prudential framework should function due to the impacts of COVID-19. The statement includes the following topics:

• General considerations on the accounting and regulatory framework;
• Prudential identification of default;
• Classification of forbearance; and
• Considerations on IFRS 9.

The statement may be accessed here.