PS14/25 – Large Exposures Framework - Key changes

Overview

On 17 July 2025, the PRA published Policy Statement PS14/25, setting out its final policy decisions on the treatment of groups of connected clients (GCCs) and the large exposures framework. It also introduced Supervisory Statement SS3/25, which details the PRA’s approach to identifying GCCs based on control relationships and economic interdependence.

A key change affecting small and medium-sized banks is the removal of credit risk mitigation (CRM) eligibility for immovable property. As a result, exposures secured by such property will no longer qualify for CRM under the large exposures regime.

Additional updates are outlined in the policy statement, with further details available via the document linked below: