Measures to reflect the impact of Covid-19

The document sets out technical guidance related to: (i) the exceptional measures introduced by governments and banks to alleviate the impact of the coronavirus disease (Covid-19); and (ii) expected credit loss (ECL) accounting. The guidance seeks to ensure that banks reflect the risk-reducing effect of the exceptional measures when calculating their capital requirements. It also sets out the amended transitional arrangements for the regulatory capital treatment of ECL accounting, which will provide jurisdictions with greater flexibility in how to phase in the impact of ECL on regulatory capital.