Featured Product

    PRA Proposes Simplified Obligations for Recovery Planning

    July 23, 2020

    PRA published the consultation paper CP10/20, with a proposal to allow certain firms to benefit from simplified obligations for recovery planning. This proposal is in light of the discretion PRA has under 4(1) of the Bank Recovery and Resolution Directive or BRRD (2014/59/EU) on whether to apply simplified obligations. The proposal involves changes to the supervisory statement SS9/17 on recovery planning and would reduce recovery planning expectations for certain firms. The comment period on CP10/20 closes on October 23, 2020. In the second half of 2020, PRA plans to publish the final policy statement and to notify the firms that are eligible for simplified obligations. Pending consideration of the responses to CP10/20, the amendments to SS9/17 would apply with immediate effect once the final policy statement is published.

    The proposals in CP10/20 relate to how PRA would perform the eligibility assessment process to determine which firms are eligible for simplified obligations in respect of recovery planning. The proposals also address the recovery planning expectations for firms deemed eligible for simplified obligations. For firms that are eligible for simplified obligations, the proposals seek to reduce the minimum number of scenarios considered in recovery planning to two and clarify that these firms are not expected to submit the information recovery plan information template referred to in SS9/17. CP10/20 is relevant to PRA-authorized UK banks, building societies, designated UK investment firms, and their qualifying parent undertakings to which the Recovery Plans Part of the PRA Rulebook applies.

    The proposals support the PRA approach to enhanced proportionality for smaller and non-systemic firms. PRA considers that the proposal introduces a more proportionate approach for recovery planning that would not cause firms to incur additional costs as a direct result of the proposals. The proposals set out in CP10/20 have been designed in the context of the withdrawal of UK from EU and entry into the transition period, during which time UK remains subject to the European law. PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework at the end of the transition period, including those arising once any new arrangements with EU take effect. PRA has assessed that the proposals would not need to be amended under the EU (Withdrawal) Act 2018.

     

    Related Links

    Comment Due Date: October 23, 2020

    Keywords: Europe, UK, Banking, Securities, Recovery Planning, Basel, BRRD, CP10/20, SS9/17, Resolution Framework, Proportionality, PRA

    Featured Experts
    Related Articles
    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
    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
    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
    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
    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
    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
    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
    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
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8521