Risk management and regulatory reporting consultants
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Click here for more information about our Solvent Exit Analysis services
Click here for more information about our Solvent Exit Analysis services
Solvent Exit Analysis
The Prudential Regulation Authority (PRA) Supervisory Statement SS2/24 requires non-systemic UK banks and building societies to develop a Solvent Exit Analysis (SEA) document, outlining preparations for a solvent exit under both stressed and non-stressed scenarios. This must include key actions, dependencies, indicators/triggers, barriers, resource assessments, communication plans, and governance arrangements. The requirements take effect on 1 October 2025, but early preparation is recommended to ensure a smooth transition into the new regulatory framework.
Basel 3.1
Basel 3.1 rules will become effective in the UK from 1 January 2027, and is a continuation of the post global financial crisis reform package that was initially implemented in 2013. The primary objective of the revisions in the current framework is to improve the reliability of capital ratios, by making standardised approaches more risk-sensitive, addressing limitations of Internal Models (IMs), and restricting the benefits that IMs can provide by introducing an ‘output floor’. This would improve both the measurement of risk and the comparability across firms.
ICAAP, ILAAP & RRP
Each ICAAP, ILAAP and RRP exercise is specific to the bank's business model, customer offerings, key risks and the way the bank manages these risks. This requires significant involvement of the bank's Board and management teams. We will work closely and collaboratively with you through every stage of these assessments and we will assist in developing these in line with current regulatory guidance and industry best practice.