This article outlines the proposed changes to exposures to MDBs under the standardised approach of credit risk, as part of UK’s implementation of Basel 3.1 (CP16/22).

This article outlines the proposed changes to exposures to institutions under the standardised approach of credit risk, as part of UK’s implementation of Basel 3.1 (CP16/22).

This article outlines the proposed changes to credit risk real estate exposure classification and risk weights under the standardised approach, as part of UK’s implementation of Basel 3.1 (CP16/22).

This article outlines the proposed changes to credit risk corporate exposure classification and risk weights under the standardised approach, as part of UK’s implementation of Basel 3.1 (CP16/22).

This article outlines the proposed changes to credit risk retail exposure classification and risk weights under the standardised approach, as part of UK’s implementation of Basel 3.1 (CP16/22).

PRA consultation paper CP5/22 proposes an introduction of a simpler regime and simplified prudential requirements for non-systemic banks and building society. In CP5/22, the PRA have proposed a definition for ‘Simpler-regime Firm’ (SRF).

Katalysys is delighted to announce that we have achieved ISO 9001:2015 (ISO 9001) and BS EN ISO/IEC 27001:2017 (ISO 27001) certification, after a successful audit conducted by external auditors accredited to UKAS (the sole national accreditation body recognised by UK Government).

The PRA set out its approach to its new objective in the DP, stating that it intends to centre its attention on facilitating economic activity in the medium- to long-term, and steer clear of activities that might create short-term economic booms at the cost of long-term stability and economic resilience.

The Pillar 3 disclosure requirements are now more proportional based on the risk and size of the bank. There is now a requirement to complete a number of prescribed templates as part of the disclosure as well. These changes comes into effect from 1 January 2022.

PRA consultation paper CP5/22 proposes an introduction of a simpler regime and simplified prudential requirements for non-systemic banks and building society. In CP5/22, the PRA have proposed a definition for ‘Simpler-regime Firm’ (SRF).

Funds Transfer Pricing (FTP) plays a crucial part of the process of setting both retail and commercial interest rates. This Insight provides a brief overview of the overall FTP process and how Katalysys can help small- and medium-sized banks implement such a process.

A common question we are asked is the basis on which own funds requirement has to be calculated for the various types of exposures on the non-trading and trading book.

The approach to evaluating risk weight for Collective Investment Undertaking (CIU) exposures has changed under the new CRR2 rules. There are three approaches outlined, and banks can select the specific approach based on the amount of information available about the underlying exposures of the CIUs.

The UK has existed the EU on 31 January 2020 and currently in the transition phase until 31 December 2020. The BoE and PRA have published a number of guidance around regulatory requirements during the transition phase and on existing the transition phase.

Prudently valued software assets no longer needs to be deducted from CET-1 capital, but can be risk weighted.

The large exposure limits are set based on the bank’s Tier-1 Capital Only.

As part of Covid-19 quick fix, the existing IFRS9 transitional arrangement for CET-1 capital adjustment has been extended by 2 years and the additional adjustment for ECL provisions recognised in 2020 and 2021 has also been provided.

SME support factor of 0.7619 for exposures up to €2.5 million and 0.85 for exposures above €2.5 million, for entities with turnover of up to €50 million.

Infrastructure supporting factor of 0.75 can be applied in calculating the own funds requirement for exposures to eligible infrastructure exposures/projects.

As with any transformational project, based on the bank’s specific circumstances and objectives, the approach to automation has to be customised and should be fit-for-purpose.