Featured Product

    PRA Consults on Definition of Simpler-Regime Firm

    April 29, 2022

    The Prudential Regulation Authority (PRA) published the consultation paper CP5/22 in context of the development a "simpler regime" for the smallest firms, with the comment period for this consultation ending on July 22, 2022.

    PRA sets out proposals to introduce a definition of the "Simpler-regime Firm" in the PRA Rulebook, with the implementation of this proposed definition expected to be the first step in designing a strong and simple prudential framework for banks and building societies that are neither systemically important nor internationally active. The proposals in the consultation paper relate to a definition of a type of firm—a Simpler-regime Firm—that would be subject to a simpler, but robust, set of prudential rules in the future. These rules will further enhance proportionality of the PRA regulatory framework, while maintaining firms’ safety and soundness.  In addition to developing its proposals for the application of simplified prudential requirements to Simpler-regime Firms, PRA intends to consider whether and how these small firms should be in scope of application of other future prudential requirements, including the Basel 3.1 reforms, on which PRA intends to consult in the fourth quarter of this year. PRA intends to consult on an approach that would enable Simpler-regime Firms to remain subject to requirements substantially the same as the currently applicable UK Capital Requirements Regulation (CRR) during any interim period between the PRA’s implementation of Basel 3.1 and the implementation of measures under the simpler regime. PRA also intends to consult on permitting a firm that meets the Simpler-regime Firm definition to choose to be subject without delay to the PRA implementation of the Basel 3.1 reforms.

    PRA plans to publish proposals for simplified prudential requirements under the simpler regime in two distinct phases. In Phase 1, PRA will focus mainly on aspects of prudential regulation that are not related to capital requirements (for example, liquidity regulation). However, in Phase 2, PRA will focus mainly on capital requirements. PRA expects to publish proposals in Phase 1 within the first half of 2023, with the second set of proposals (in Phase 2) likely to follow in 2024. Also, PRA intends to publish a policy statement on the definition of a Simpler-regime Firm later in 2022 or early 2023.


    Related Links


    Keywords: Europe, UK, Banking, Basel, Reporting, CRR, PRA Rulebook, Simpler-Regime Firm, Regulatory Capital, CP5 22, PRA, Proportionality, Headline

    Featured Experts
    Related Articles

    EBA Sets Out Roadmap for 2023, Updates Reporting Framework 3.2

    The European Banking Authority (EBA) published its work program for 2023 as well as the technical package for phase 3 of version 3.2 of its reporting framework.

    September 30, 2022 WebPage Regulatory News

    FED Announces Launch of Climate Scenario Analysis Exercise in 2023

    The Board of Governors of the Federal Reserve System (FED) announced a pilot climate scenario analysis exercise for six largest banks in the U.S.

    September 29, 2022 WebPage Regulatory News

    BIS Paper Studies Impact of Fintech Lending on Small Businesses in US

    The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.

    September 26, 2022 WebPage Regulatory News

    UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks

    The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).

    September 26, 2022 WebPage Regulatory News

    EBA Launches EU-Wide Transparency Exercise in 2022

    The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.

    September 23, 2022 WebPage Regulatory News

    SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks

    The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."

    September 22, 2022 WebPage Regulatory News

    EC Rule Lists Advanced Economies for Market Risk Capital Calculations

    The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.

    September 21, 2022 WebPage Regulatory News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8523