On 22 April 2025, the Prudential Regulation Authority (PRA) published Policy Statement PS5/25 – Identification and management of step-in risk.
Background
Previously, the PRA consulted in CP23/23 on the identification and management of step-in risk, shadow banking entities and groups of connected clients.
Chapter 2 of CP23/23 included proposals to:
On 17 April 2025, the Prudential Regulation Authority (PRA) updated its webpage on stress testing to note that it has published two stress test scenarios for use by banks and building societies that are not participants in the Bank of England’s concurrent stress testing exercise.
The PRA explains that the scenarios are derived
On 17 April 2025, the Prudential Regulation Authority (PRA) published an update on a modification by consent of the Liquidity Coverage Ratio (CRR) Part of the PRA Rulebook in relation to third country covered bonds.
The PRA had previously, on 8 April 2025, offered a modification by consent that would allow certain third
On 16 April 2025, a Corrigendum to Regulation (EU) 2024/1623 of 31 May 2024 (CRR3) amending Regulation (EU) No 575/2013 as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor was published in the Official Journal of the EU.
The Corrigendum concerns an amendment to
On 15 April 2025, the European Banking Authority (EBA) published its benchmarking report on remuneration and gender pay gap for institutions and investment firms.
Background
The EBA collects remuneration and gender pay gap data from national competent authorities for benchmarking under the Capital Requirements Directive and the Investment Firms Directive (IFD)
On 11 April 2025, the Prudential Regulation Authority (PRA) announced that it was offering a modification by consent (MbC) to modify Article 11 (1)(d)(ii) of the Liquidity Coverage Ratio part of the PRA Rulebook.
The MbC allows a firm that has incorrectly applied a rule regarding third country covered bonds’ inclusion
On 9 April 2025, the Financial Policy Committee (FPC) published a record of its meetings on 4 and 8 April 2025.
The record includes the following comments:
On 9 April 2025, the Prudential Regulation Authority (PRA) published a Dear Chief Financial Officer letter setting out its expectations on significant risk transfer financing.
The Dear CFO letter highlights certain practices the PRA has observed in relation to illiquid and structured financing portfolios across regulated firms.
The letter covers:
On 31 March 2025, the European Commission (Commission) issued a proposed Regulation amending the Capital Requirements Regulation (CRR) on prudential requirements for credit institutions and investment firms. The amendment, if adopted, will render permanent the current transitional approach to the Net Stable Funding Ratio (NSFR) requirement.
Background
Under the
On 28 March 2025, the Financial Policy Committee (FPC) issued a consultation paper setting out proposals intended to ensure that the other systemically important institutions (O-SII) buffer continues to address financial stability risks in line with the FPC’s risk appetite, as set out in its framework, while also avoiding any undue