• Basel 3.1

    Basel 3.1 rules will become effective in the UK from 1 January 2027. The primary objective of the revisions in the current framework is to improve the reliability of capital ratios and making the standardised approaches more risk sensitive. At Katalysys we have a deep understanding of the regulations and, importantly, their practical implementation.

Key activities

The Basel 3.1 reforms will materially impact capital requirements, data and modelling processes, systems and internal governance. At Katalysys, we help small- and medium-sized banks navigate these changes through practical, proportionate, and forward-looking advisory support.

To guide your bank through Basel 3.1, we offer a structured, end-to-end service model:

  • Evaluate how Basel 3.1 will affect your bank’s current capital framework, including:

    • Impact analysis on Risk Weighted Asset (RWA) calculations under the revised standardised approach

    • Assessment of new risk requirements and recalibration of capital charges

    • Identification of gaps in data, governance, or reporting capabilities

    • Identification of gaps with regards to to the current systems, data and target operating model

  • Develop a clear and actionable roadmap to Basel 3.1 readiness:

    • Establish a tailored implementation plan aligned with PRA timelines

    • Prioritise workstreams across risk, finance, data, and regulatory reporting

    • Define governance and internal coordination mechanisms

  • Support the practical execution of Basel 3.1 changes across your organisation:

    • Assist in bridiging the gaps identified with the data, systems, documentation and traget operating model

    • Assist in documting the Basel 3.1 rules as applicable to the Bank, including judgement, assumptions and interpretations

    • Assist with data mapping, control enhancements, and documentation updates

    • Align policies, procedures, and committee terms of reference to new capital calculation approaches

    • Facilitate wokshops and working groups to support internal understanding and readiness

  • Offer ongoing review and assurance services to ensure implementation is robust and regulator-ready:

    • Independent review of impact assessments, recalculated RWAs, and capital plans

    • Review of internal governance, including Board and Committee oversight

    • Quality assurance on reporting and disclosures related to Basel 3.1 compliance

  • Provide structured support for management and board-level engagement :

    • Prepare Board and Committee briefing packs to support Basel 3.1 implementation governance

    • Assist in presenting the chnages and impact to relevant governance bodies for challenge

    • Provide documentation and evidence to demonstrate regulatory alignment and readiness

What we offer

  • Impact & Gap analysis

    Impact & Gap analysis

    Explaining the impact of Basel 3.1 and exploring credit risk, operational risk, market and credit valuation adjustment (CVA) risk, regulatory reporting, and Pillar 3. The workshops include practical and tailored worked examples; and focus on the most relevant aspects based on your bank’s business model and activities. We also conduct bespoke workshops that include practical and tailored worked examples.

  • Guidance notes

    Guidance notes (Assumptions & Interpretations)

    We’ll prepare guidance documents outlining key assumptions and interpretations relating to regulatory reporting and Pillar 3 disclosures. This will include information relating to: product offerings; an assessment of the applicability of each reporting template; crucial regulatory definitions and their application to your bank; reporting instructions for each row and column; calculation examples; key judgements; assumptions and interpretations.

  • Review & assurance

    Review & assurance

    We can provide an independent review of your Basel 3.1 readiness, including documentation, capital calculations, and board reporting to help ensure compliance and supervisory alignment.

Let’s get started

Interested in learning more about how we can support your bank? Whether you have specific requirements or just want to explore our services further, we’re here to help. Please feel free to contact us, and one of our experts will get in touch to discuss your needs and how we can assist

We look forward to working with you!

Why choose us

  • Our team brings deep knowledge of PRA regulations and Basel standards, helping your bank to navigate the technical and strategic implications of the Basel 3.1 reforms confidently.

  • We work with several banks, enabling us to share practical implementation insights, emerging supervisory expectations, and peer group practices.

  • Our structured and collaborative delivery model ensures an efficient and high-quality engagement. Whether it’s regulatory reporting transformation or targeted improvements, our approach saves you time, reduces the compliance burden, and leaves you with a usable, enduring solution.

  • Our clients consistently value the strong partnerships we build with them. We’re known for being hands-on, accessible, and responsive - providing clear communication, regular updates, and strategic guidance throughout the engagement.

  • We ensure your Basel 3.1 implementation is not just compliant but integrated into your wider regulatory reporting strategy and business processes.

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