Regulatory updates, Capital adequacy, Basel 3.1 Manish Patidar Regulatory updates, Capital adequacy, Basel 3.1 Manish Patidar

PS14/25 – Large Exposures Framework - Key changes

The PRA published a Policy Statement on 17 July 2025, 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.

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CP12/25 – Updates to Pillar 2A Capital Framework

The PRA has published Consultation Paper 12/25, marking the first phase of a two-stage review of its Pillar 2A methodologies and supporting guidance. This consultation seeks to address the consequential impacts of the PRA’s near-final rules for implementing the Basel 3.1 standards, while also providing additional clarity on its Pillar 2A methodologies.

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Basel 3.1, Regulatory updates Alvin Abraham Basel 3.1, Regulatory updates Alvin Abraham

Delay in UK Implementation of Basel 3.1 to 1-Jan-2027

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.

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Basel 3.1, Regulatory updates Alvin Abraham Basel 3.1, Regulatory updates Alvin Abraham

Mark Your Calendar: Key Dates for Basel 3.1 and SDDT

Mark Your Calendar: Key Dates for Basel 3.1 and SDDT. It has been approximately three months since the PRA released the second part of its near-final rules for implementing the Basel 3.1 standards in the UK. With the official implementation date of 1 January 2026 less than a year away, the clock is ticking for firms to ensure compliance. While the implementation date of 1 January 2026 is top of mind for many, it is essential not to overlook several key milestones in 2025. These will be particularly relevant both for firms seeking SDDT status and banks navigating Basel 3.1 requirements.

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Basel 3.1, Regulatory updates Alvin Abraham Basel 3.1, Regulatory updates Alvin Abraham

Basel 3.1 Data Collection Exercise

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.

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Regulatory updates, Basel 3.1 Alvin Abraham Regulatory updates, Basel 3.1 Alvin Abraham

UK Basel 3.1: An overview of the near-final rules

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).

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Regulatory updates, Capital adequacy Alvin Abraham Regulatory updates, Capital adequacy Alvin Abraham

CP8/24 – Restatement and minor amendments to CRR rules relating to the definition of own funds

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.

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Regulatory updates, Basel 3.1 Alvin Abraham Regulatory updates, Basel 3.1 Alvin Abraham

UK Basel 3.1: Near-final Rules Part 2 (PS9/24) - Key Changes

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.

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