Skip to main content
  • This website sets cookies on your device. To find out more about how we use cookies please refer to our Privacy and Cookie Policy. By continuing to use the site, we’ll assume that you are content for us to set these on your device.
  • Close

CRD IV updates

Capital Requirements Directive IV | Updates​ | 2015 updates​ 2014 and 2013 updates 

October 2017

On Tuesday 3 October, the PRA published CP18/17 ‘Occasional Consultation Paper’, which includes proposals relevant to firms to which CRD IV applies.

On Tuesday 3 October, the PRA also published PS22/17 ‘Refinements to the PRA’s Pillar 2A capital approach’, which includes:

The refined Pillar 2A capital framework will come into force on 1 January 2018. The PRA will implement the new approach as part of the Supervisory Review and Evaluation Process (SREP) reviews. To support the assessment, firms are required to submit the Pillar 2 data items FSA076 and FSA077 alongside their Internal Capital Adequacy Assessment Process (ICAAP).

July 2017

On Thursday 13 July, the PRA published CP13/17 ‘Pillar 2 liquidity’. This CP sets out the PRA’s proposals on a cashflow mismatch risk (CFMR) framework and other PRA methodologies for assessing firms’ liquidity risk, under the Pillar 2 liquidity (‘Pillar 2’) framework. This CP also proposes updates to SS24/15 ‘The PRA’s approach to supervising liquidity and funding risks’ and SS34/15 ‘Guidelines for completing regulatory reports’, draft reporting rule changes, and a draft reporting template and instructions relating to CFMR. This consultation closes on Friday 13 October 2017.


On Wednesday 12 July the PRA published CP12/17 'Pillar 2A capital requirements and disclosure', that sets out proposed adjustments to the PRA's Pillar 2A capital framework. It is relevant to all banks, building societies and PRA-designated investment firms. This consultation closes on Thursday 12 October 2017.

June 2017

On Wednesday 21 June the PRA published CP10/17 ‘Compliance with the EBA’s Guidelines on disclosure: Composition of collateral for exposures to counterparty credit risk’. This consultation closes on Monday 21 August 2017.

April 2017

On Wednesday 18 January the European Banking Authority (EBA) published an update to the XBRL taxonomy that Competent Authorities should use for the remittance of data under the EBA Implementing Technical Standards (ITS) on supervisory reporting. Reports with reference dates as of 30 June 2017 onwards are to use the new taxonomy set (2.6), which is related to the January 2017 framework release. On 28 April the PRA confirmed that, if daily liquidity reporting, as set out in PRA Supervisory Statement 24/15 'The PRA’s approach to supervising liquidity and funding risks', is expected between 1 June 2017 to 30 June 2017 inclusive, collection will be against Data Point Model (DPM)Taxonomy 2.6. Firms will be notified via the GABRIEL collection system if they are required to submit daily reports, which is effective from the following day. Firms should refer to the EBA’s website for further information on Taxonomy 2.6.

February 2017

On Friday 24 February the PRA issued a news release alognside the publication of Consultation Paper 3/17 'Refining the PRA's Pillar 2A capital framework'.

On Friday 17 February the PRA published updated notes to help firms complete intraday liquidity returns. The updates address common errors and inconsistencies found in the submissions of intraday liquidity reporting and supersede previous individual guidance. The PRA asks firms to have regard to the updated notes on the template going forward, including as the basis for their upcoming quarterly returns in March.

Intraday liquidity monitoring reporting

December 2016

On Wednesday 7 December in accordance with Article 131 of the Capital Requirements Directive (2013/36/EU) (CRD), the PRA disclosed the 2016 list of UK headquartered Global Systemically Important Institutions (G-SIIs). The PRA also disclosed their respective sub-categories, applicable scores and G-SII buffers.
The 2016 UK G-SIIs and their sub-category allocations are as follows:
G-SII buffer rate
​HSBC Holdings Plc 3 416 2%
​Barclays Plc 2 308 ​1.5%
The ​Royal Bank of Scotland Group Plc ​1 154 1%
​Standard Chartered Plc 1 133 1%
These buffers will apply from 1 January 2018, subject to phase-in arrangements outlined in Article 162(5) of the CRD. The list of G-SIIs and their sub-category allocations will be updated annually.  

On Tuesday 6 December, the PRA issued clarification on IFRS 9 for 2017 ICAAP stress testing and capital planning on the 2016 stress test scenario webpage.

This clarification sets out information on how firms should incorporate IFRS 9 into stress testing and capital planning carried out as part of their ICAAP obligations in 2017. This is only applicable:

  • to firms that apply International Financial Reporting Standards (IFRS) and so is not applicable to firms that apply UK GAAP; and
  • for ICAAPs based on accounts as at 31 December 2016 or a later date before 31 December 2017.

This clarification sets out how firms should incorporate future changes to the accounting standards (IFRS 9) into their stress testing and capital planning as part of their Internal Capital Adequacy Process (ICAAP) for 2017. From 1 January 2018, IFRS 9 will introduce a forward-looking expected credit loss model for loans, replacing the current 'incurred loss' model. The clarification aims to encourage firms applying IFRS to have at a minimum certain forecast numbers for 2018 onwards on an IFRS 9 basis, to reinforce the need to be prepared for the new accounting standard, and to help the firms and PRA size and plan for the impact of IFRS 9.

November 2016

On Wednesday 30 November the PRA published CP44/16 'Amendments to the PRA's rules on loan to income ratios in mortgage lending' referred to in the Bank of England's publication of the Financial Stability Report - November 2016.
On Tuesday 29 November the PRA published its 2016 list of UK firms designated as other systemically important institutions (O-SIIs), as required under the Capital Requirements Directive (2013/36/EU) (CRD) as implemented in the Capital Requirements (Capital Buffers and Macro-prudential measures) Regulations 2014. The PRA is required to identify O-SIIs on an annual basis.

2016 list of UK firms designated as other systemically important institutions (O-SIIs)

October 2016

On Thursday 20 October, the PRA published a statement on its interpretation of the concept of ‘durable link’ in the Capital Requirements Regulation (575/2013).

On Tuesday 18 October, the PRA published a PRA statement on feedback received during the consultation period for CP21/16 ‘Pillar 2 liquidity’.

On Monday 17 October, the FCA issued a note on its website that Taxonomy is available on GABRIEL for reporting period end dates on or after 30 September 2016.

On Friday 7 October, the FCA issued a note on its website that it is aiming to have Taxonomy available on GABRIEL on Monday 17 October.  If the FCA will not meet this deadline, it will notify firms ahead of time. The FCA encourages firms to continue to use the Pre-Production Test Environment to prepare and test T2.4.1.1 files, please email to request access as needed. Please note: the resubmission of previously submitted items is not impacted.

September 2016

On Friday 30 September, the FCA issued a note on its website that, due to a recent unexpected IT incident, it is unable to implement Taxonomy which comes into effect on 1 October. Those firms required to comply with CRD IV are therefore currently unable to submit data using T2.4.1.1. At this stage, the FCA is targeting either Monday 17 or Monday 24 October for the Taxonomy to be available on GABRIEL. Firms are encouraged to continue to use the Pre-Production Test Environment to prepare and test their T2.4.1.1 files, please email to gain access if needed. The FCA will provide a further update next week, or will notify firms sooner if the Taxonomy is implemented so that they can submit the new T2.4.1.1 returns. Please note: the resubmission of previously-submitted items is not impacted.

August 2016

On Friday 12 August, the PRA published a letter reminding all CRR firms that they are required to comply with PRA rules to put in place a policy promoting diversity on the management body. The letter includes links to the General Organisational Requirements chapter of the PRA Rulebook, and the ‘EBA report on the benchmarking of diversity practices’ published in July.

PRA rules on diversity within firms' management body

July 2016

On Friday 29  July, the PRA published Consultation Paper 29/16 'Residential mortgage risk weights'.

On Thursday 7 July, the PRA published 'Counterparty credit risk' - SS12/13 UPDATE and 'Market risk' - SS13/13 UPDATE.

On Monday 4 July, the PRA published a letter from supervisors to firms with the title 'Additional liquidity monitoring metrics (ALMM) - New data item'. 

Additional liquidity monitoring metrics (ALMM) - New data item  

May 2016

On 12 May the PRA published CP21/16 Pillar 2 liquidity. The PRA proposed a statement of policy on its approach to three aspects of Pillar 2 liquidity (‘Pillar 2’): intraday risk, debt buyback and non-margined derivatives. The CP also outlined the PRA’s Pillar 2 objectives and scope. In addition, it provided an early overview of planned future work to develop the Pillar 2 approach where the PRA is not yet setting out proposals. As such, this CP constituted the first of two planned CPs on Pillar 2.

On 10 May 2016, the PRA published a reporting clarification on the procedures for reporting ‘Own funds requirements related to Pillar II adjustments’ in the COREP CA4 template. This clarification updates the CA4 reporting clarification issued in September 2014, to reflect the changes to the Pillar 2 capital adequacy framework contained in PS17/15. These updates include the introduction of the PRA buffer, the phasing in of the CRD IV buffer, and the phasing out of the capital planning buffer.

Clarification of procedures for completion of COREP Section C 04.00 (CA4) Row 820: Own funds requirements related to Pillar II adjustments

March 2016

On 31 March the PRA published Equity release mortgages – Discussion Paper 1/16. The PRA asks for views on equity release mortgage (ERM) valuation, capital treatment, risk management and associated matters, and seeks a range of views on good practice for managing the risks introduced by investing in this asset class. While the DP is most relevant to life insurance and reinsurance companies with ERM exposure, it will also be of interest to other insurers, industry stakeholders (including, without limitation, banks, building societies, other lenders, trade bodies, brokers, credit rating agencies, consultants, actuaries and auditors) and academics. By opening the discussion to a range of stakeholders, the PRA is aiming to consolidate views from across sectors. The discussion process closes on Friday 27 May 2016.

On 11 March the PRA updated The PRA’s approach to banking supervision. The PRA’s approach to insurance supervision was also updated.

February 2016

On 19 February the PRA published Policy Statement 6/16 ‘The PRA’s approach to identifying other systemically important institutions (O-SIIs)’ which sets out feedback to responses to CP39/15 and includes the final statement of policy on the PRA’s approach to identifying O-SIIs, as is required under the Capital Requirements Directive (2013/36/EU) (CRD) as implemented in the Capital Requirements (Capital Buffers and Macro-prudential measures) Regulations 2014. The PRA will identify and publish a list of O-SIIs annually. The 2015 list of UK firms designated as O-SIIs is available below.

The PRA’s approach to identifying other systemically important institutions (O-SIIs) - PS6/16