PRA Updates Policy on Liquidity Reporting Under FSA047/048 and PRA110
PRA published the policy statement PS1/19 that provides feedback to responses to the consultation paper CP22/18 titled "Liquidity reporting: FSA047 and FSA048" and the proposal in CP16/18, which intended to correct the level of consolidation of the PRA110 reporting requirements. It also contains the PRA’s final policy specifying amendments to the Regulatory Reporting Part of the PRA Rulebook (Appendices 1 and 2), along with the updated supervisory statement SS34/15 on guidelines for completing regulatory reports (Appendix 3). PS1/19 is relevant to banks, building societies, and PRA-designated investment firms.
SS34/15 was updated following the finalization of PS1/19 to reflect the extension to the FSA047 and FSA048 end date from June 30, 2019 to 31 December 2019 in Chapter 2 and Appendix 1.The changes to SS34/15 (Appendix 3) will take effect from the date of publication of PS1/19. The final policy confirms:
- Delay in terminating the FSA047 and FSA048 for six months from July 01, 2019
- Reduction in the reporting frequency of the FSA047 and FSA048 liquidity reports to align with that of the PRA110 liquidity report, in cases where it would otherwise differ, from July 01, 2019
- Extension of the submission deadline for firms that would report PRA110 on a weekly basis in business-as-usual conditions from one business day to two business days from July 01, 2019 until October 31, 2019
PRA had received six responses to CP22/18 and no comments were received in response to the proposal in CP16/18 to correct the applicable consolidation levels at which PRA110 will be reported. All six respondents noted, in qualitative terms, the additional reporting burden that extending the requirement to report the FSA047 and FSA048 for a further six months would entail. PRA has considered this feedback and has decided not to delay implementing the PRA110 report or to amend the associated reporting requirements. Following consideration of responses to CP22/18, PRA has made one change to PRA110 remittance dates during the dual reporting period and one clarification to reporting expectations in stress. The amendments to the Regulatory Reporting Part will be implemented by repealing instrument PRA 2018/3 (Appendix 1) and issuing a new instrument (Appendix 2).
The rules will take effect from the dates outlined in the new instrument. Six months remain until the implementation of PRA110 on July 01, 2019. PRA is reminding firms taking part in interim reporting to refer to the most recent questions and answers on the template and instructions and submit any questions that are not covered. PRA expects all other firms to continue to familiarize themselves with the policy, template and instructions, including the Q&As, to prepare for implementation on July 01, 2019.
Related Links
Keywords: Europe, UK, Banking, Reporting, PRA110, Liquidity Risk, Pillar 2, 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.
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
Previous Article
OSFI Releases Strategic and Departmental Plans for Coming MonthsRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.