PRA finalized the policy proposed in CP14/19 in relation to amendments to PRA rules to introduce a further threshold of total assets of GBP 5 billion or above for PRA110 reporting frequency. PRA has published a policy statement (PS26/19) that contains final amendments to the Reporting Part of the PRA Rulebook (Appendix 1) and the updated supervisory statement (SS24/15) on PRA approach to supervising liquidity and funding risks (Appendix 2). PS26/19 also provides feedback to responses to consultation paper (CP14/19) on PRA110 reporting frequency threshold. PS26/19 is relevant to PRA-authorized UK banks, building societies, and PRA-designated UK investment firms, referred to collectively as firms with total assets of GBP 5 billion or above, a figure that is calculated in accordance with the Council Directive 86/635/EEC. The implementation date for PS26/19 is May 01, 2020.
PRA110 reporting commenced on July 01, 2019. From that date, firms with total assets, calculated in accordance with Council Directive 86/635/EEC, equal to or greater than EUR 30 billion on either an individual basis or UK consolidation group basis are required to report on a weekly basis, unless there is a specific liquidity stress or market liquidity stress, in which case the PRA110 will be reported every business day. Firms with total assets less than EUR 30 billion (calculated on the same basis) report monthly, unless there is a specific liquidity stress or market liquidity stress, in which case PRA110 will be reported weekly.
PRA, in CP14/19, had proposed to amend PRA rules to introduce a further threshold of total assets of GBP 5 billion or above for PRA110 reporting frequency and to update SS24/15 paragraph 6.2A to align with the proposed PRA110 reporting frequency threshold. PRA received two responses to CP14/19. The respondents made a number of useful observations, which are summarized in Chapter 2 of PS26/19; however, after consideration, PRA has decided not to change the proposed policy. The policy set out in PS26/19 has been designed in the context of the current UK and EU regulatory framework. 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.
Effective Date: May 01, 2020
Keywords: Europe, UK, EU, Banking, Pillar 2, Reporting, PS 26/19, CP 14/19, SS 24/15, PRA 110, Liquidity Risk, Basel III, PRA
Previous ArticleDNB Examines Results of Stress Tests for Dutch Pensions Sector
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.