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Duty to report

Institutions must report to the Banco de Portugal information that allows to identify in a timely manner any situation which may place them in a situation or risk of financial distress. Thus, the institution’s management or supervisory body must report immediately to the Banco de Portugal where at least one of the following situations is identified:

  • the alert or activation thresholds of the internal indicator framework of the recovery plan are triggered, even when the analysis performed by the institution concludes that none of the recovery options should be implemented (in accordance with Article 3(4) of Notice of the Banco de Portugal No 3/2015);
  • non-compliance or risk of non-compliance with the own funds requirements or the liquidity requirements;
  • the institution is in a situation or risk of financial distress or insolvency (in accordance with Article 116-Z(1) of the Legal Framework of Credit Institutions and Financial Companies — Portuguese acronym: RGICSF);
  • any of the situations listed in Article 116-Z(2) of the RGICSF, even though the institution considers it might not have an impact on its financial situation.

As regards the recovery plan indicators, the Banco de Portugal must be notified:

  • where the activation threshold is triggered, no later than two working days after such occurrence; 
  • where the alert threshold is triggered, as soon as possible.

At an initial stage, the Banco de Portugal needs only to be informed of the indicator triggered, and the details and conclusions of the analysis performed by the institution and any decision taken may be reported at a later stage.

Without prejudice to compliance with other communication or participation duties set out by law, the supervisory body, any member of the management or supervisory bodies and the holders of qualifying holdings must also report immediately to the Banco de Portugal any serious irregularities they become aware of related to the management and accounting procedures, or internal control of the institution that may give rise to the credit institution's financial distress.

Any of the above situations should be reported to the Banco de Portugal using the following email address with the subject “Reporting obligation — Occurrence”: (institutions may also notify by other means and in advance that a formal report will be submitted).