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Basel 3.1

Basel 3.1 rules will become effective in the UK from 1 January 2026, 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.


Basel 3.1


How can we help you?

Banks may face a variety of challenges when understanding or applying the new requirements, including assessing the impact on the Bank’s governance, systems, data sourcing, training etc. At Katalysys, we have a deep understanding of upcoming changes from the perspective of both regulatory rules and practical implementation.

Our team is supporting a range of clients in this area. Our support can be in the form of:

  • workshops or training to cover the new requirements;

  • gap/Impact analysis;

  • guidance on implementing industry best-practice in relation to Basel 3.1 standards;

  • documentation of the bank-specific assumptions and interpretation;

  • preparation of overall procedure notes;

  • validation of the systems/calculations; or,

  • review of the regulatory returns.