On 21 December 2020, the European Banking Authority (EBA) updated its report on the implementation of selected COVID-19 policies.

The report was first published on 7 July 2020 and then updated on 7 August 2020 to provide additional clarity on the implementation of the reporting and disclosure framework in the context of the COVID-19 measures. In the latest update to the report the EBA has included additional FAQs in section 2 in relation to the guidelines on moratoria, and amended some FAQs in order to align them with the requirements stemming from the reactivation of the guidelines on moratoria on 2 December 2020. Also the EBA has amended section 3 on operational risk in order to include answers to an additional question raised by institutions and Member State competent authorities (NCAs) on general aspects concerning the COVID-19 related operational risk events and losses and on how to identify and quantify the “one-off” attribute of the COVID-19 operational risk costs. The EBA has reviewed section 4 of the report to include additional questions that have been raised by the NCAs and credit institutions for the implementation of the COVID-19 reporting and disclosure guidelines, together with the answers to these questions. Finally, the EBA has inserted new sections 5 and 6 which provide clarity on the interaction of the COVID-19 pandemic with the draft regulatory technical standards on the specification of the nature, severity and duration of an economic downturn in accordance with Articles 181(3)(a) and 182(4)(a) of the Capital Requirements Regulation, the guidelines on downturn loss given default (LGD) estimation, as well as the treatment of COVID-19 related public guarantee schemes for credit.