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.

The Prudential Regulation Authority (PRA) published Consultation Paper 8/24 ‘Definition of Capital: restatement of CRR requirements in PRA Rulebook’ (CP8/24) covering various matters relating to own funds including revocation by HM Treasury (HMT) of related rules set out in inter alia Regulation (EU) No 575/2013 (the CRR) and transferring them, with certain modifications, into the PRA Rulebook.

On 12 September 2024, the PRA published Consultation Paper 7/24 (The Strong and Simple Framework: The simplified capital regime for Small Domestic Deposit Takers (SDDTs)) as part of its Phase 2 of announcements, which sets out the proposed simplified capital regime for SDDTs.

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).

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). This article focuses on the key changes in comparison to the PRA’s earlier consultation paper(s), in each of the major risk areas.

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).

This article outlines the key changes to the calculation of market risk capital requirements as part of the implementation of Basel 3.1 standards (PS17/23).

We recently sponsored a webinar - hosted by UK Finance - focussing on the key requirements of which banks must take account with respect to their current or planned relationships with deposit aggregators. Download a copy of the slides here.

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.