On 18 December 2024, the Financial Stability Board (FSB) issued a consultation report on proposed policy recommendations to its members and standard setting bodies on leverage in non-bank financial intermediation (NBFI).
Entities in scope of the proposed recommendations are non-bank financial firms that use leverage, either financial or synthetic, including hedge
On 11 December 2024, the Basel Committee on Banking Supervision (Basel Committee) published final guidelines for counterparty credit risk (CCR) management. The guidelines will replace the Basel Committee’s ‘Sound practices for banks’ interactions with highly leveraged institutions’ published in January 1999.
CCR
CCR is the risk that the counterparty to a
On 28 November 2024, the Basel Committee on Banking Supervision (Basel Committee) published a report which describes the range of practices in implementing a positive neutral countercyclical capital buffer (CCyB).
In 2010, the Basel Committee published guidance that detailed the key requirements for operating the CCyB, and in 2017 it published
On 29 November 2024, the Bank of England (BoE) published a policy statement, PS19/24, on the Strong and Simple Framework: The definition of an Interim Capital Regime (ICR) firm.
PS19/24 sets out the final PRA statement of policy (SoP) on operating the ICR, as well as rules relating
On 21 November 2024, the Prudential Regulation of Credit Institutions (Meaning of CRR Rules and Recognised Exchange) (Amendment) Regulations 2024 were made and published on legislation.gov.uk, along with an explanatory memorandum.
The Regulations will do two things:
On 20 November 2024, the Basel Committee on Banking Supervision issued a press release which stated that it members unanimously reaffirmed their expectation of implementing all aspects of the Basel III framework in full, consistently and as soon as possible. The press release added that the Basel Committee would be issuing its guidelines for counterparty
On 18 October 2024, the Prudential Regulation Authority (PRA) issued Consultation Paper 14/24 – Large Exposures Framework (CP14/24).
CP14/24 is relevant to PRA-authorised UK banks, building societies, PRA-designated investment firms, PRA-approved holding companies, PRA-designated holding companies and other Capital Requirements Regulation (CRR) consolidation entities.
Background
The large exposures framework
On 15 October 2024, the Prudential Regulation Authority (PRA) published consultation paper CP13/24 – Remainder of CRR: Restatement of assimilated law, which sets out the PRA’s proposals to restate the relevant provisions in the assimilated Capital Requirements Regulation No 575/2013 (CRR) in the PRA Rulebook and other policy material such
On 15 October 2024, the Bank of England (BoE) published a consultation paper on amendments to its approach to setting a minimum requirement for own funds and eligible liabilities (MREL).
The proposals
The consultation brings together proposals relating to the BoE’s statement of policy on its approach to setting MREL (the MREL
On 7 October 2024, the draft Prudential Regulation of Credit Institutions (Meaning of CRR Rules and Recognised Exchange) (Amendment) Regulations 2024 (the draft Regulations) were published on legislation.gov.uk, along with a draft explanatory memorandum.
The draft Regulations make two changes: