Top news and publications
- PS24/21 – Implementation of Basel standards: Non-performing loan securitisations
- PS22/21 – Implementation of Basel standards: Final rules
- PS21/21 – The UK leverage ratio framework
News and speeches
Joint statement by the Financial Conduct Authority, Prudential Regulation Authority, The Pensions Regulator and the Financial Reporting Council on the publication of Climate Change Adaptation Reports
28 October 2021
The PRA welcomed the Government’s invitation under the Climate Change Act 2008 to publish Climate Change Adaption Reports. The reports set out how climate change affects the PRA’s respective responsibilities and the actions the PRA, and the financial sector, are taking in response to it. Read more on the Climate Change Adaption Report below.
Adaptability and resilience in the mutuals sector – speech by Charlotte Gerken
4 October 2021
In her speech given at the Association of Financial Mutuals Conference, Charlotte highlights the adaptability and resilience of mutual insurers. These are insurance providers that are owned by their members. She talks about what the review of Solvency II regulations will mean for the mutual sector, and sets out her views on three challenges it faces. These are:
- technological change;
- diversity and inclusion in the financial sector; and
- climate change risk.
Cross cutting publications and updates
PRA Climate Change Adaptation Report 2021 – Climate-related financial risk management and the role of capital requirements
28 October 2021
The PRA has produced this report in response to an invitation by the Department for Environment, Food & Rural Affairs (DEFRA) to participate under the third round of the climate change adaptation reporting power.
The Climate Financial Risk Forum publishes its second set of guides to help the financial industry effectively manage climate-related financial risks
21 October 2021
A second round of guides to help financial firms manage climate-related financial risk has been published by the Climate Financial Risk Forum (CFRF). Written by industry, for industry, the guides focus on risk management, scenario analysis, disclosure, innovation, and climate data and metrics. The guides published on Thursday 21 October build on those published in June 2020 and will help firms respond effectively to climate-related financial risks.
The CFRF has been running since March 2019 and is chaired jointly by the PRA and the Financial Conduct Authority, reflecting the importance of climate change to their respective strategic objectives.
A webinar event was held on Thursday 21 October 2021 to mark the launch of the Session 2 guides. A recording of the event, along with the slides and transcript, are available on the FCA’s website. Please note that you will need to register first in order to view the material.
Further information
Banking publications and updates
PS24/21 – Implementation of Basel standards: Non-performing loan securitisations
21 October 2021
This PRA Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 10/21 ‘Implementation of Basel standards: Non-performing loan securitisations’. It also contains the PRA’s final policy, as follows:
- a new Non-Performing Exposures Securitisation Part of the PRA Rulebook; and
- an updated Supervisory Statement (SS) 10/18 ‘Securitisation: General requirements and capital framework’.
This PS is relevant to UK banks, building societies, and PRA-designated investment firms as well as UK financial holding companies and UK mixed financial holding companies of certain PRA-authorised firms.
PS23/21 – Credit risk: The identification of the nature, severity, and duration of an economic downturn for the purposes of Internal Ratings Based (IRB) models
20 October 2021
This PRA PS provides feedback to responses to CP7/21 ‘Credit risk: The identification of the nature, severity, and duration of an economic downturn for the purposes of Internal Ratings Based (IRB) models’.
This PS is relevant to UK banks, building societies, and PRA-designated UK investment firms.
Letters to credit unions ‘PRA annual assessment of the credit union sector’
15 October 2021
Letters to directors of credit unions regulated by the PRA, providing feedback from the PRA’s annual assessment of credit unions.
PS22/21 – Implementation of Basel standards: Final rules
14 October 2021
This PRA PS provides the final PRA Rulebook instruments, Statements of Policy (SoPs), SSs, and reporting templates and instructions, which were published as near-final in PS17/21 ‘Implementation of Basel standards’.
This PS is relevant to UK banks, building societies, and PRA-designated investment firms, as well as UK financial holding companies and UK mixed financial holding companies of certain PRA-authorised firms.
The policy material included in this PS will take effect on Saturday 1 January 2022.
PS21/21 – The UK leverage ratio framework
8 October 2021
This PS contains feedback from the Financial Policy Committee and the PRA on responses to CP14/21 ‘Consultations by the FPC and PRA on changes to the UK leverage ratio framework’
This PS is relevant to all Capital Requirements Regulation (CRR) firms and CRR consolidation entities on an individual, consolidated, and where relevant, sub-consolidated basis. For the purposes of the application of the requirements on a consolidated basis, references to ‘firms’ include CRR consolidation entities.
PRA statement on freezing O-SII buffer rates for a further year
8 October 2021
This statement provides an update on the PRA’s position to maintain firms’ systemically important institutions (O-SII) buffer rates at 2019 levels for a further year.
The decision is relevant only to ring-fenced bodies and large building societies that will be subject to the O-SII buffer.
CP20/21 – Trading activity wind-down
8 October 2021
This CP sets out the PRA’s proposed expectations in respect of firms’ engagement in trading activities that may affect the financial stability of the UK. It also proposes that firms engaged in trading activities be able to carry out a full or partial orderly wind-down of their trading activities in recovery and post-resolution restructuring.
The proposed expectations in this CP are relevant, although may not apply directly, to all PRA-authorised UK banks, their qualifying parent undertakings and PRA-designated investment firms that are engaged in trading activities, and relevant third country branches. This CP is also relevant to policymakers and practitioners that would expect to be involved in a firm’s resolution. It is not relevant to credit unions.
This consultation closes on Friday 21 January 2022.
Your input and views on open PRA consultations and other requests closing in November 2021
Closing date: 8 November 2021
Also in the month
20 October 2021
8 October 2021
More information
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