UK Basel 3.1: An overview of the near-final rules

On 12 September 2024, the Prudential Regulation Authority (PRA) published the second part of its near-final rules on the implementation of Basel 3.1 standards through Policy Statement 9/24 (PS9/24). The first part of these near-final rules was issued on 2 December 2023, as part of PS17/23.

This article provides an overview of the near-final rules published by the PRA, as part of the UK's implementation of Basel 3.1 (PS9/24).

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CP8/24 – Restatement and minor amendments to CRR rules relating to the definition of own funds

The Prudential Regulation Authority (PRA) published Consultation Paper 8/24 ‘Definition of Capital: restatement of CRR requirements in PRA Rulebook’ (CP8/24) covering various matters relating to own funds including revocation by HM Treasury (HMT) of related rules set out in inter alia Regulation (EU) No 575/2013 (the CRR) and transferring them, with certain modifications, into the PRA Rulebook.

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Simplified Capital Regime for Small Domestic Deposit Takers (SDDTs)

On 12 September 2024, the PRA published Consultation Paper 7/24 (The Strong and Simple Framework: The simplified capital regime for Small Domestic Deposit Takers (SDDTs)) as part of its Phase 2 of announcements, which sets out the proposed simplified capital regime for SDDTs.

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Regulatory updates, Basel 3.1 Joshua Nowak Regulatory updates, Basel 3.1 Joshua Nowak

UK Basel 3.1: Near-final Rules Part 2 (PS9/24) - Key Changes

On 12 September 2024, the Prudential Regulation Authority (PRA) published the second part of its near-final rules on the implementation of Basel 3.1 standards through Policy Statement 9/24 (PS9/24). This article focuses on the key changes in comparison to the PRA’s earlier consultation paper(s), in each of the major risk areas.

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IRRBB, k-ALM Joshua Nowak IRRBB, k-ALM Joshua Nowak

Recalibration of IRRBB Shock Scenarios

In December 2023, the Basel Committee on Banking Supervision (BCBS) published a Consultative Document on the recalibration of shocks for the measurement of IRRBB. Following the consultation period, on 16 July 2024, the BCBS published the final Recalibration of Shocks in the Interest Rate Risk in the Banking Book Standard.

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Stress testing, ICAAP, ILAAP, Risk Management Ravi Patel Stress testing, ICAAP, ILAAP, Risk Management Ravi Patel

PRA’s 2024 ICAAP Stress Test Scenarios for Non-Systemic Banks

On 27th June 2024, the Prudential Regulation Authority (“PRA”) published the ICAAP Scenarios for non-systemic UK banks, which are the supply shock scenario and the demand shock scenario. This article summarises the key factors of the scenarios and provides specific points on how small- and medium-sized banks should approach there stress testing design processes, with relation to the 2024 ICAAP Scenarios.

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Dear CRO letter - Thematic review of private equity related financing activities – April 2024

On April 23, 2024, the Prudential Regulation Authority (PRA) published the outcomes of a thematic review of banks' risk management practices related to private equity (PE) financing activities. This article summarises the key areas of improvement and provides specific action points that small- and medium-sized banks may consider as part of their risk management practices.

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Dear CEO Letter - Non-systemic firms’ recovery planning thematic review - 2024

On the 15th May 2024, The Prudential Regulation Authority (“PRA”) published the outcomes of a thematic review it conducted on the recovery planning capabilities in a Dear CEO letter. This article summarises the key areas of Improvements and provides specific action points that small- and medium-sized banks may consider as part of the recovery planning process.

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