COVID-19: Credit Action Plan for Banks

By Elmarie Van Breda

A featured article of our July 2020 edition of PRMIA's Intelligent Risk quarterly newsletter

European  banks  have  been  enabled  to  assist  their  customers  during  the  COVID-19  pandemic  recession1. The ECB provided monetary stimulus, and liquidity is being made available to banks through government debt funding support programs. However, the changed definitions of default, materiality, and forbearance by the EBA establish more restrictive IFRS9 impairments. Thus, it is inevitable that there will be increases in expected losses (EL) affecting earnings and unexpected losses (UL) affecting capital allocation.

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Intelligent Risk is PRMIA's quarterly publication, bringing all PRMIA members free access to knowledge and information about risk management for financial institutions as well as current information on PRMIA chapters, committees, academic partners, news and events.

Individual articles from each edition are published under our members only Risk Library resources section. PRMIA is sharing select articles from the April 2020 edition with the public. Get more articles like this by joining PRMIA today.

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