Authorization of special accounting standards for credit institutions by the CNBV. Part II
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On March 26, 2020, the National Banking and Securities Commission (CNBV) issued special accounting standards applicable to credit institutions as a consequence of the COVID-19 contingency. On June 29, 2020, the term granted to such institutions was extended.
Content of the special accounting standards
On March 26 th of this year, the CNBV issued special accounting standards with the purpose of providing support measures to the clients that were hindered from facing their credit obligations with banking institutions.
This regulation by exception allows entities to continue registering in their accounting the consumer, housing and commercial loans that are subject to restructuring or renovation, as “good standing portfolio” (cartera vigente), as long as they are loans registered with such character as of February 28, 2020. Likewise, this regulation granted credit institutions with a term of 120 calendar days to restructure or renew their portfolio, counted from February 28th .
This term elapsed on June 26 of this year; however, on the 29th of that month, the CNBV disclosed a press release, in which it states that, considering the current contingency conditions, such term is extended to July 31 of this same year, as well as that the credit operations authorized in March that have been impacted afterwards by the negative effects of the contingency may benefit from these support measures. The latter will allow financial institutions to finish analyzing and, where appropriate, approve pending applications.
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