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
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