10 June 2019: Publication of EU’s revised rules on capital requirements
The European Union published a package of legislative amendments in the Official Journal of the European Union on 7 June 2019 - see Official Journal of the European Union, L 150, 7 June 2019.
The package included a new Regulation (EU/2019/876) amending Regulation (EU/575/2013) as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, report and disclosure requirements, and Regulation (EU/648/2012) (CRR II).
CRR II includes requirements which enter into force from 27 June 2019 (see Article 3 (3)). In light of the change to CRR Article 26(3), we recognise that Rules 7.1 and 7.5 of the Definition of Capital Part of the PRA Rulebook no longer achieve the purpose for which they were made. Therefore, it has been decided to offer a modification by consent, please see our Waivers and modifications of rules page. We intend to consult in due course on amending Chapter 7 of the Definition of Capital Part of the PRA Rulebook, and any expectations we have of firms on the application of CRR Article 26(3).
CRR II resolution specific requirements will apply to UK global systemically important banks (G-SIBs) and UK material subsidiaries of non-EU G-SIBs from 27 June 2019. These firms should refer to the notice found on the Resolution page.
Update 28 February 2019
Interpreting Commission Implementing Regulation (EU) 2018/1624 in light of UK withdrawal from the EU: The UK’s withdrawal from the EU requires changes to be made to UK legislation to ensure that it remains functional. The Bank of England and PRA have published PS5/19 ‘The Bank of England’s approach to amending financial services legislation under the European Union (Withdrawal) Act 2018’. Changes are being made by the Bank’s BRRD BTS Exit Instrument. Furthermore, as described in PS5/19 the Bank of England, in its capacity as Resolution Authority, has published interpretative guidance in relation to the templates contained in Commission Implementing Regulation (EU) 2018/1624 on information for resolution planning. This guidance is available on Transitioning to post-exit rules and standards.