Published on 17 December 2019
Pillar 2 liquidity: PRA110 reporting frequency threshold - PS26/19
Overview
This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 14/19 ‘Pillar 2 liquidity: PRA110 reporting frequency threshold’ (see page 2 of 2). It also contains the PRA’s final policy, as follows:
- amendments to the Reporting Part of the PRA Rulebook (Appendix 1); and
- updated Supervisory Statement (SS) 24/15 ‘The PRA’s approach to supervising liquidity and funding risks’ (Appendix 2).
This PS is relevant to PRA-authorised UK banks, building societies, and PRA-designated UK investment firms, referred to collectively as ‘firms’ with total assets of £5 billion or above, calculated in accordance with Council Directive 86/635/EEC.
The PRA received two responses to the CP. The respondents made a number of useful observations, which are summarised in Chapter 2, but after consideration, the PRA has decided not to change the proposed policy.
Implementation
The implementation date of this policy is Friday 1 May 2020.
The policy set out in this PS has been designed in the context of the current UK and EU regulatory framework. The PRA has assessed that the policy will not be affected in the event that the UK leaves the EU with no implementation period in place.
Having considered the feedback, the PRA does not consider that the respondent raised new information that alters the validity of the cost benefit analysis. The PRA has decided that it does not need a change to the proposed policy.
Policy Statement 26/19Appendices
- PRA RULEBOOK: CRR FIRMS: LIQUIDITY REGULATORY REPORTING (AMENDMENT) (NO. 3) INSTRUMENT 2019 (pdf)
- Supervisory Statement (SS) 24/15 ‘The PRA’s approach to supervising liquidity and funding risks’
- the Regulatory Reporting Part of the PRA Rulebook (Appendix 1 and Appendix 2); and
- Supervisory Statement (SS) 24/15 ‘The PRA’s approach to liquidity and funding risk’ (Appendix 3).
Published on 25 June 2019
Pillar 2 liquidity: PRA110 reporting frequency threshold - CP14/19
Overview
In this consultation paper (CP), the Prudential Regulation Authority (PRA) sets out its proposal to amend the reporting frequency of the PRA110 reporting template (PRA110), when a firm is in stress.
The proposed rule would introduce a further threshold of total assets of £5 billion or above, calculated in accordance with Council Directive 86/635/EEC. Firms above this threshold, that would otherwise report PRA110 monthly, would report on every business day if (and for as long as) there is a specific liquidity stress, or market liquidity stress in relation to the firm, branch, or group in question.
The proposals in this CP would make amendments to:
This CP is relevant to PRA-authorised UK banks, building societies, and PRA-designated UK investment firms, referred to collectively as ‘firms’ with total assets of £5 billion or above, calculated in accordance with Council Directive 86/635/EEC.
Responses and next steps
This consultation closes on Friday 27 September 2019. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP14_19@bankofengland.co.uk.
The proposals are based on the United Kingdom (UK) and European Union (EU) regulatory framework as it currently stands. The PRA has assessed that the proposals will be affected in the event that the UK leaves the EU with no implementation period in place. A second version of the proposed rules which includes the relevant changes relating to the UK’s withdrawal from the EU is set out in Appendix 2.
Implementation
The proposed implementation date for the proposals in this CP is Friday 1 May 2020.