PRA Publishes Q&A on Usability of Liquidity and Capital Buffers
PRA published a set of questions and answers (Q&A) on the usability of liquidity and capital buffers and their operation as set out in PRA rules and guidelines. This document is relevant to all firms to which the Capital Requirements Directive IV applies. The document will be updated as the COVID-19 situation evolves. New Q&As and updates to the existing Q&As will appear in Italics.
In the recent weeks, BoE and its three policy committees have announced a number of measures to help UK businesses and households to bridge across the economic disruption resulting from COVID-19 outbreak. These actions have sought to reduce pressure on banks, building societies, and designated investment firms (also called "banks") while ensuring that the financial system can be a source of strength for the economy during this challenging period. PRA and the Financial Policy Committee have, on several occasions, stated their expectations that all element of substantial capital and liquidity buffers that have been built up by banks exist to be used as necessary to support the economy. This document answers some commonly asked questions on the usability of these capital and liquidity buffers.
Related Link: Q&A
Keywords: Europe, UK, Banking, Q&A, Capital Buffers, Liquidity Risk, Regulatory Capital, COVID-19, PRA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
CMF Extends Application Period for Accounting Standard ProvisionsRelated Articles
OSFI Outlines Prudential Policy Priorities for Coming Months
OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.
BIS Announces TechSprint on Innovative Green Finance Solutions
Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.
EBA Proposed Regulatory Standards for Central Database on AML/CFT
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.
ECB Responds to EC Consultation on Crisis Management Framework
ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.
ACPR Publishes Version 1.0.0 of RUBA Taxonomy
ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.
BCBS, CPMI, and IOSCO to Survey Market Participants on Margin Calls
BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.
ECB Amends Decision on TLTRO III
ECB published Decision 2021/752 to amend Decision 2019/1311 on the third series of targeted longer-term refinancing operations or TLTRO III.
Central Bank of Ireland Issues Draft Template for AnaCredit Reporting
The Central Bank of Ireland published Version 2.7 of the draft credit data template and rules for monthly AnaCredit reporting by banks.
OSFI Consults on Revisions to BCAR and Leverage Requirements Returns
OSFI proposed revisions to the Basel Capital Adequacy Reporting (BCAR) and leverage requirements returns for the 2023 reporting, with the comment period ending on July 09, 2021.
EBA Seeks Views on Revisions to Nonperforming Loan Data Templates
EBA published a discussion paper on review of the standardized nonperforming loans (NPL) transaction data templates, along with the proposed revised NPL data templates.
