Banking publications and updates
26 March 2019
The structure of the Regulatory reporting – banking sector section of the website was updated to aid usability, specifically, there are now separate pages for information on banks, building societies and investment firms and credit unions.
CP6/19 ‘Pillar 2 liquidity: Updates to the framework’
19 March 2019
In this CP, the PRA sets out proposals for regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework. The proposed changes would be implemented through amendments to:
This CP is relevant to UK banks, building societies, PRA-designated investment firms, and non-EU EEA banks.
This consultation closes on Friday 19 April 2019.
The PRA also published version 4 of the PRA110 Q&As. For more information see the Reporting of PRA110 section on the Regulatory reporting – banking sector webpage.
CP5/19 ‘Pillar 2 capital: Updates to the framework’
13 March 2019
In this CP, the PRA proposes to update the Pillar 2 capital framework to reflect continued refinements and developments in setting the PRA buffer (also referred to as Pillar 2B).
The PRA also proposes to clarify its approach to assessing weaknesses in risk management and governance, explain the process for updating the benchmarks used to calculate the Pillar 2A requirement for credit risk and correct some minor drafting errors that have been identified in previous publications.
This CP is relevant to PRA-authorised banks, building societies and PRA-designated investment firms. This CP is not relevant to credit unions, insurance and reinsurance firms.
This consultation closes on Thursday 13 June 2019.
PS8/19 ‘Credit risk mitigation: Eligibility of guarantees as unfunded credit protection
13 March 2019
This PS provides feedback to responses to CP6/18 ‘Credit risk mitigation: Eligibility of guarantees as unfunded credit protection’. It also contains the PRA’s final policy in updated:
This PS is relevant to all firms bound by the Capital Requirements Regulation (575/2013) (CRR).
PS7/19 ‘Credit risk: The definition of default’
6 March 2019
This PS provides feedback to responses to CP17/18 ‘Credit risk: definition of default’. It also contains the PRA’s final policy, as follows:
- an amendment to the Credit Risk Part of the PRA Rulebook to set thresholds for determining whether a credit obligation is material for the purpose of the Capital Requirements Regulation’s (575/2013) (CRR’s) definition of default (Appendix 1); and
- an update to the PRA’s expectations in SS11/13 ‘Internal Ratings Based (IRB) approaches’ to implement the EBA’s regulatory products that relate to the definition of default (Appendix 2).
This PS is relevant to UK banks, building societies, and PRA-designated investment firms.
Reminder of 1 July 2019 PRA110 implementation
1 March 2019
Firms are reminded that PRA110 reporting and the commencement of the dual reporting period with FSA047 and FSA048 will take effect on Monday 1 July 2019. Firms are encouraged to check the Regulatory reporting – banking sector page for updates on PRA110 reporting, and to continue to familiarise themselves with the policy, template and instructions, and Q&As, to prepare for implementation.