Today, the Prudential Regulation Authority (PRA), in consultation with HM Treasury, announced a one-year delay to the implementation of Basel 3.1 in the UK. Originally scheduled to take effect on 1 January 2026 for banks not classified as Small Domestic Deposit Takers (SDDTs), the new implementation date is now set for 1 January 2027.

As part of the Near-final Rules (PS9/24), the PRA has announced an off-cycle review of Pillar 2 capital requirements. This review aims to address double counting, rebase Pillar 2A, and mitigate unintended impacts arising from changes in Pillar 1 RWAs. To facilitate this process, the PRA has requested a specific set of information based on the reference date of 31 December 2024, with a submission deadline of 31 March 2025.

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).

The PRA published a Consultation Paper on 18 October 2024, outlining proposals to implement the remaining Basel large exposures standards (LEX standards). A key change for small and medium-sized banks is the proposed removal of CRM eligibility for immovable property, meaning exposures secured by immovable properties would no longer qualify for CRM under Large Exposures.

This article outlines the changes relating to credit risk corporate exposure classification and risk weights under the standardised approach, as part of UK’s implementation of Basel 3.1 (PS9/24).

This article outlines the changes relating to credit risk retail exposure classification and risk weights under the standardised approach, as part of UK’s implementation of Basel 3.1 (PS9/24).

This article outlines the changes relating to exposures to institutions under the standardised approach of credit risk, as part of UK’s implementation of Basel 3.1 (PS9/24).

This article outlines the changes to exposures to MDBs under the standardised approach of credit risk, as part of UK’s implementation of Basel 3.1 (PS9/24).

This article outlines the changes relating to real estate exposures and risk weights under the standardised approach of credit risk, as part of UK’s implementation of Basel 3.1 (PS9/24).

This article provides an overview of the near-final rules concerning exposures in default under the standardised credit risk approach, as part of the UK's implementation of Basel 3.1 (PS9/24).

This article provides an overview of the near-final rules regarding the off-balance sheet items under the standardised approach, as part of the UK's implementation of Basel 3.1 (PS9/24).

This article outlines the key changes to the calculation of own funds requirement for operational risk, as part of the implementation of Basel 3.1 standards (PS17/23).

This article outlines the reporting changes, as part of UK’s implementation of Basel 3.1 (PS9/24).

This article outlines the key changes to the calculation of Credit valuation adjustment and counterparty credit risk, as part of the implementation of Basel 3.1 standards (PS17/23).

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.

PRA in the supervisory statement SS2/24 outlines requirements around solvent exit planning and execution. This article summarises the requirements and provides specific action points that small- and medium-sized banks can consider to implement these requirements.

On 12 December 2023, the Prudential Regulation Authority (PRA) published near-final rules on the implementation of Basel 3.1 standards through Policy Statement 17/23 (PS17/23). PS17/23 covers near-final rules on market risk; credit valuation adjustment (CVA) and counterparty credit risk (CCR); operational risk; interactions with the PRA’s Pillar 2 framework; and, re-denominate currency references to pound sterling (GBP).

The Prudential Regulation Authority (PRA) has introduced the Strong and Simple Framework for domestic banks and building societies that are non-systemic. The banks and building societies that meet the eligibility criteria are classified as Small Domestic Deposit Takers (SDDT) firms.

PRA’s Policy Statement PS15/23 (The Strong and Simple Framework: Scope Criteria, Liquidity and Disclosure Requirements) specifies the finalised SDDT criteria and prudential regulations for features (e.g., liquidity) not relating to capital requirements.

This article outlines the primary risks to banks linked to the utilisation of Deposit Aggregators (DAs) and proposes mitigating measures as outlined in the Dear CFO letter issued by the Prudential Regulation Authority (PRA) on November 15, 2023 and the Dear CEO letter in April 2021.

PS14/23 - ‘The non-performing exposures capital deduction’ eliminates the Common Equity Tier 1 (CET1) deduction requirement for non-performing exposures (NPEs) that are treated as insufficiently covered by firms’ accounting provisions.