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.
||UK BoE; UK FB; UK PRA
||Bank; BHC; BS; CNSM; Corp; Ins; MG Orig; SIFI
||Lt 3/25/2020; Lt, PR, 3/23/2020; COVID-19
||BCS; Financial; HR; Operations; Reporting; Risk; Treasury
||Banking; Commodities; Corporate; Insurance; Loan; Mortgage; Securities
|Reg. Last Update
Last substantive update on 03/24/2020