CNBV Communication. Provisions to face COVID-19 health emergency.
On April 8, 2020, the National Banking and Securities Commission (hereinafter, the “CNBV“) issued the Agreements and Provisions to Face the Contingency Derived from SARS Cov-2 (COVID-19)” no. 022/2020 , which are addressed to credit institutions in order to keep the credit flow in the economy and reduce the current contingency impact.
The agreements deal with the following:
Approval for temporary amendments in capitalization matters, which are contained in the General Provisions Applicable to Credit Institutions.
CNBV has determined that the deadlines for multiple banking institutions to use the capital conservation supplement (capital buffer) without deteriorating their minimal solvency will be between April 1, 2020, and March 31, 2021. This in order to support the economy and continue with the financing flow. The capitalization Early Alert Systems found in the current Provisions consider that the multiple banking institutions can use the aforementioned supplements to keep grating credits without deteriorating their solvency and facing the stress scenarios like the one the country is currently facing.
To use said capitalization conservation supplements, the multiple banking institutions do not have to present the capitalization conservation plan for CNBV approval, as long as the plan is consummated maximum of 50%; they must only inform CNBV of the causes which originated said supplement and no its Board of Directors, or request CNBV authorization for the increase of the financing amounts granted to related people. 
Delay in the entry into force of the regulations in international standards and prudential precepts matters.
CNBV delays the entry into force of the international standards and prudential precepts contained on the Provisions to facilitate the credit institutions labor facing the contingency decreed, especially the following:
- Implementation of the international standard known as IFRS9 and the commercial credit portfolio recalibration, resolution published on the Federal Oficial Gazette (hereinafter, the “FOG“) on March 13, 2020. Original date of the entry into force: January 1, 2021. Delayed date of entry into force due to contingency: January 1, 2022.
- Business Indicator Method for computing the capital requirements by operational risk, currently under public consultation on the National Commission for Regulatory Improvement (hereinafter, the “CONAMER”) platform. Its FOG publication date will be until the stability for the capital indicators is determined or the operative capacity of the institutions is reinstalled, performing a prior evaluation of the situation.
- A similar situation applies for the standard regarding the requirement of Total Loss-Absorbing Capacity (TLAC). Its FOG publication will be done when it is considered that the economic conditions allow their implementation on credit institutions.
The Provisions amendment in active operative diversifications matters to implement the so-called international standard for High Expositions is available for public consultation on CONAMER; this amendment is versed on the limitation to global systemically important banks (G-SIBs) for the expositions to counterparties or counterparty groups connected by control links, or by the existence of economic dependency between them.
For systemically important local multiple banking institutions this will be on January 1, 2021, and not on October 1, 2020, as originally intended, keeping times applicable for the rest of credit institutions.
Authorization for the application of deadlines to issuing companies for presenting diverse information before CNBV.
CNBV grants temporary administrative facilities to different issuing companies with securities inscribed in the National Securities Registry under CNBV supervision and which have adopted mechanisms to ensure the continuity under certain limitations and operative restrictions.
Said facilities consist in the extension of the deadlines on which the Issuing Companies must disclose for the investment public the information in financial, administrative, operative, economic, and legal matters; including, without limitation :
– Annual information, such as:
o Reports presented in Meetings of Shareholders;
o Annual reports;
o Financial statements;
o Documentation related to external auditors; and
o Information regarding shareholding.
– Quarter information, including Financial Statements.
– Other corporate information:
o Computing of bylaws
The aforementioned to ensure that the issuance companies comply with their obligations of presenting several periodic information as per the General Provisions Applicable to Issuing Companies and other parties in the stock market; as well as the General Provisions Applicable to entities and Issuing Companies supervised by CNBV which contract external auditing services for basic financial statements.
Extension of powers to CNBV Chairperson in deadline suspension matters.
By agreement of CNBV, the powers of CNBV Chairperson contained in the agreement establishing the extraordinary and temporary measures, the suspension for some deadlines to assist financial entities and people subject to CNBV supervision due to coronavirus (also named COVID-19), published on the FOG on March 26, 2020, which authorizes such Chairperson to extend the term of the period in which periods are suspended.
 General Provisions Applicable to Credit Institutions, Articles 225 and 225 Bis, referred to multiple banking institutions classified under category II by CNBV, in accordance with the General Provisions Applicable to Credit Institutions, Article 220.
 Title Four. Information that must be provided to the Commission, stock market, and investment public. Chapter One, Periodic Information for the General Provisions Applicable to Issuing Companies.