UK PRA Banks Covid Joint Statement

On Mar. 23, UK BoE and banks issued joint statement on Covid aid.

  • Follows UK Chancellor Mar. 2020 announced £330bn of loan guarantees, see #73815.
  • Also follows UK PRA Mar. 2020 statement on prudential policy measures, see #74259.
  • Joint Statement of Help
  • BoE and government worked closely with UK banks to put in place range of measures.
  • Giving enormous scope to industry to provide help to both businesses and households.
  • UK banks are in a strong financial position, to provide further support to the economy.
  • Banks are rapidly getting systems in place, so if firms need support, are there to help.
  • Stated this is an unprecedented situation, but will pass and the economy will rebound.
  • Help business and households bridge difficult period and keep hardship to a minimum.
  • UK FB Statement
  • UK FB also announced banking and finance industry pledge of support for customers.
  • Have taken out adverts in national newspapers, which highlight the support available.
  • Issued response to the joint HMT, BoE and FCA letter on bank lending during Covid-19.
  • Will deliver support and flexibility businesses and consumers need, in challenging time.
  • Mar. 25, 2020 Joint Regulator Letter
  • On Mar. 25, 2020, UK PRA, BoE and Treasury issued a joint letter to banks on lending.
  • Vital for GVT, regulators and industry to work together to mitigate long lasting effects.
  • Covid corporate financial facility (CCFF) will provide help against disrupted cash flows.
  • The Coronavirus business interruption loan scheme (CBILS) will provide government-backed finance, and new term funding scheme will help banks provide credit for SMEs.
  • Several other measures have been taken, such as CCyB reduced to 0%, see #73400.
  • Supervisory guidance reminded firms to use their capital or liquidity buffer as needed.
  • 2020 stress test cancelled and timetable for biennial exploratory scenario amended.
  • Welcome action taken by banks to offer help and flexibility to businesses, consumers.
  • On Mar. 26, 2020 UK LSE said supported statement from FCA, FRC, PRA, see #74706.

Regulators UK BoE; UK FB; UK PRA
Entity Types Bank; BHC; BS; CNSM; Corp; Ins; MG Orig; SIFI
Reference Lt 3/25/2020; Lt, PR, 3/23/2020; COVID-19
Functions BCS; Financial; HR; Operations; Reporting; Risk; Treasury
Countries United Kingdom
Products Banking; Commodities; Corporate; Insurance; Loan; Mortgage; Securities
Regions EMEA
Rule Type Guidance
Rule Date 3/23/2020
Effective Date 3/25/2020
Rule Id 74365
Linked to Rule :74259
Reg. Last Update 3/25/2020
Report Section UK

Last substantive update on 03/24/2020