Liquidity: The PRA's approach to supervising liquidity and funding risks

Consultation Paper 27/19
Published on 17 October 2019

Overview

In this Consultation Paper (CP), the Prudential Regulation Authority (PRA) sets out proposals to update Supervisory Statement (SS) 24/15 ‘The PRA’s approach to supervising liquidity and funding risk’  (see Appendix) to reflect relevant updates to the Bank of England’s Market Operations Guide (Market Operations Guide) and to reiterate relevant expectations set out in SS9/17 ‘Recovery Planning’ . 

This CP is relevant to PRA-authorised UK banks, building societies, and PRA-designated UK investment firms, referred to collectively as ‘firms’.

Responses and next steps

This consultation closes on Sunday 17 November 2019. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to: CP27_19@bankofengland.co.uk

The PRA considers that a consultation period of one month is justified given the relatively minor impact of the proposed updates and the benefit of providing clarity to firms by aligning SS24/15 with the Market Operations Guide as soon as possible.

The proposals set out in this CP have been designed in the context of the current UK and EU regulatory framework. The PRA has assessed that the proposals will not be affected in the event that the UK leaves the EU with no implementation period in place.

Implementation

The PRA proposes that the draft amendments to SS24/15 (see Appendix) will apply from the date of final publication.

PDFConsultation Paper 27/19

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