On 11 January 2024, HM Treasury (HMT) published a consultation on enhancing the Special Resolution Regime. The consultation sets out HMT’s proposals to enhance the UK’s resolution regime for banking institutions (i.e., banks, building societies, and Prudential Regulation Authority-designated investment firms), with the aim of ensuring that the UK continues to have world-class arrangements to … Continue Reading
On 19 December 2023, the European Central Bank (ECB) published the results of its 2023 Supervisory Review and Evaluation Process (SREP) and its supervisory priorities for 2024 – 2026. The SREP is an annual exercise in which ECB supervisors examine EU banks’ risks and produce capital requirements and guidance for each individual bank (which is … Continue Reading
On 19 December 2023, the Prudential Regulation Authority (PRA) published a consultation paper, CP28/23, on the leverage ratio treatment of omnibus account reserves and minor amendments to the leverage ratio framework. CP28/23 sets out the PRA’s proposals to: The proposals are relevant to Capital Requirements Regulation (CRR) firms and CRR consolidation entities on an individual, consolidated, … Continue Reading
On 14 December 2023, the European Banking Authority (EBA) issued two consultation papers which contain amendments to the regulatory technical standards (RTS) on the fundamental review of the trading book (FRTB) and on the standardised approach for counterparty credit risk (SA-CCR). The proposed amendments are part of the roadmap on the EU Banking Package and … Continue Reading
On 14 December 2023, the European Banking Authority (EBA) published a discussion paper on the centralisation of EEA banks Pillar 3 disclosures in the EBA Pillar 3 data hub. The Capital Requirements Regulation 3 introduces a new mandate for the EBA to centralise institutions’ prudential disclosures and make prudential information readily available through a single … Continue Reading
On 14 December 2023, the European Banking Authority (EBA) issued a consultation paper containing draft implementing technical standards (ITS) amending Commission Implementing Regulation (EU) 2021/451 on supervisory reporting referred to in Article 430(7) of the Capital Requirements Regulation (CRR) concerning the output floor, credit risk, market risk and the leverage ratio. The EBA has issued … Continue Reading
On 14 December 2023, the European Banking Authority (EBA) issued a consultation paper on draft implementing technical standards (ITS) amending Commission Implementing Regulation (EU) 2021/637 on public disclosures by institutions of the information referred to in Titles II and III of Part Eight of the Capital Requirements Regulation (CRR). The consultation concerns changes to the … Continue Reading
On 12 December 2023, the Prudential Regulation Authority (PRA) published the first of two near-final policy statements covering the implementation of the Basel 3.1 standards for market risk, credit valuation adjustment risk, counterparty credit risk and operational risk. The policy statement, PS17/23, takes account of feedback the PRA received to its consultation paper CP16/22 on … Continue Reading
On 5 December 2023, the Prudential Regulation Authority (PRA) published Policy Statement PS15/23 – The Strong and Simple Framework: Scope criteria, liquidity and disclosure requirements (PS15/23). In PS15/23, the PRA provides feedback to responses to consultation papers CP4/23 – The Strong and Simple Framework: Liquidity and Disclosure requirements for Simpler-regime Firms and CP14/23 – Pillar 3 remuneration disclosure. In … Continue Reading
On 5 December 2023, the Prudential Regulation Authority (PRA) published Consultation Paper CP23/23 – Identification and management of step-in risk, shadow banking entities and groups of connected clients. In CP23/23, the PRA sets out proposed rules requiring Capital Requirements Regulation (CRR) firms that are not small domestic deposit takers (SDDTs) and CRR consolidation entities that … Continue Reading
On 22 November 2023, the European Banking Authority (EBA) published a final report on the draft regulatory technical standards (RTS) on the assessment methodology under which Member State competent authorities verify an institution’s compliance with the internal model approach as per Article 325az(8) of the Capital Requirements Regulation (CRR). The draft RTS have been developed … Continue Reading
On 20 November 2023, there was published in the Official Journal of the European Union (OJ) Commission Implementing Regulation (EU) 2023/2526 of 17 November 2023 amending the Implementing Technical Standards (ITS) laid down in Implementing Regulation (EU) 2022/389 as regards the content lists of the information on individual data to be disclosed by Member State … Continue Reading
On 13 November 2023, the European Supervisory Authorities (ESAs) published draft implementing technical standards (ITS) amending existing ITS on the mapping of external credit assessment institutions’ (ECAIs) credit assessments under the Capital Requirements Regulation (CRR). The amendments reflect the outcome of a monitoring exercise on the adequacy of existing mappings, and the deregistration of three … Continue Reading
On 13 November 2023, the Prudential Regulation Authority (PRA) published Policy Statement PS14/23: The non-performing exposures (NPEs) capital deduction (PS14/23). In PS14/23, the PRA provides feedback to responses to its earlier consultation on the topic, CP6/23. It also contains the PRA’s final policy, in the form of amendments to the Own Funds and Eligible Liabilities … Continue Reading
On 8 November 2023, the Basel Committee on Banking Supervision (Basel Committee) published a document containing final technical amendments which have been integrated into the consolidated Basel Framework. The amendments relate to: (i) the standardised approach to operational risk; (ii) the disclosure standards for credit valuation adjustment risk; (iii) the description of the calculation of … Continue Reading
On 31 October 2023, the Prudential Regulation Authority (PRA) published Discussion Paper DP3/23 – Securitisation: capital requirements (DP3/23). DP23/2 is intended to prepare for the PRA’s planned consultation on draft rules to replace firm-facing requirements in Part Three, Title II, Chapter 5 (the ‘Securitisation Chapter’) of the Capital Requirements Regulation – subject to HM Treasury … Continue Reading
On 23 October 2023, the Prudential Regulation Authority (PRA) published Policy Statement PS13/23: Updating UK Technical Standards on the identification of global systemically important institutions (G-SIIs). PS13/23 provides feedback to responses to Consultation Paper CP16/23, which was published in July 2023, and sets out the PRA’s final policy to amend the UK Technical Standards (UKTS) … Continue Reading
On 20 October 2023, the European Commission published Commission Delegated Regulation (EU) of 20 October 2023 supplementing the Capital Requirements Regulation with regard to regulatory technical standards (RTS) on the calculation of the stress scenario risk measure. The RTS foresee two overarching methods to develop the extreme scenarios of future shock for non-modellable risk factors: … Continue Reading
On 20 October 2023, the European Central Bank (ECB) published a report on sound practices in counterparty credit risk (CCR) governance and management. The report presents the findings of the targeted review performed in the second half of 2022 on how banks govern and manage CCR. It highlights sounds practices and points to areas where … Continue Reading
On 16 October 2023, HM Treasury published a draft of the Resolution on Central Counterparties (Modified Application of Corporate Law and Consequential Amendments) Regulations 2023 (the draft statutory instrument (SI)), along with an explanatory memorandum. The purpose of the draft SI is to amend corporate law, and make consequential amendments, to ensure the new special … Continue Reading
On 16 October 2023, HM Treasury published the minutes of a meeting of the Central Counterparty (CCP) Resolution Liaison Panel, held in June 2023. The Panel was brought together for the meeting on an extraordinary basis before the Financial Services and Markets Act 2023 (FSMA 2023) received Royal Assent, to allow for industry views to … Continue Reading
On 12 October 2023, the European Banking Authority (EBA) published a report on the role of environmental and social risks in the prudential framework. The report follows a discussion paper that the EBA published in May 2022 which initiated the discussion on the role of environmental and social risks in the prudential framework for credit … Continue Reading
On 2 October 2023, the European Systemic Risk Board (ESRB) published its response to the European Securities and Markets Authority’s (ESMA) final report on extending emergency measures on central counterparty (CCP) collateral requirements. On 14 October 2022, ESMA published a final report on emergency measures on collateral requirements. Previously, the European Commission asked ESMA to … Continue Reading
Introduction On 28 September 2023, HM Treasury published a consultation setting out near-term proposals for the UK ring-fencing regime. It also set out the responses to its earlier call for evidence on the longer-term future of the ring-fencing regime. The PRA also published a consultation in respect of third-country branches and subsidiaries within ring-fenced body … Continue Reading
