On 7 July 2020, the European Banking Authority (EBA) published a report providing clarification on certain issues concerning the application of the prudential framework that have been raised as a consequence of the COVID-19 pandemic.

Specifically the report is intended to provide clarity on the implementation of the EBA guidelines on legislative and non-legislative moratoria on loan payments by addressing a number of interpretative questions and providing an overview of the general payment moratoria in place in the EU based on notifications sent to the EBA. The report also includes considerations on COVID-19 issues which can arise in applying the operational risk framework. Common criteria is set out that is designed to provide clarity on the supervisory and regulatory expectations regarding the treatment of COVID-19 operational risk losses in the capital requirement calculations.