Featured Product

    PRA Updated IRB Approach CRR Permission Application Pack

    June 19, 2017

    The PRA published an updated internal ratings based (IRB) approach Capital Requirements Regulation (CRR) Permission application pack. This application pack should be used by institutions applying under Article 143 of CRR for permission to use the IRB approach to calculate risk-weighted exposure amounts for credit risk.

    The application process is modular and eight separate forms need to be completed for each module of the application process. The IRB application process has been split into three phases made up of eight modules. These modules are Scoping (Module 1), Technical model reviews (Module 2), IT and Data (Module 3), Use test and experience test (Module 4), Permanent partial use and roll out plans (Module 5), Financial reporting and stress testing (Module 6), Internal audit and independent validation (Module 7), and Governance (Module 8). Each module covers a different aspect of a firm’s plans for IRB implementation and applicants are required to provide a response to all of the questions in each module. Each module submitted to the PRA must be signed off by the firm's CEO or other appropriate senior manager, as agreed with the supervisory team.

     

    Applicants will initially need to submit a completed application form for Module 1, with responses to requests for information contained in the module (the PRA may request further information, including additional documentation, at a later stage). Review process of the PRA is designed to establish compliance with the CRR, assess prudential risk, and ensure a consistent treatment for all firms. The PRA has the power to exercise various national discretions given to the competent authority under the applicable articles of the CRR and these are referred to as “CRR Permissions.”

     

    Related Links

    CRR Permissions Application Pack (PDF)

    Application of CRR Permissions

    CRR Permissions

    Keywords: Europe, UK, PRA, Banking, CRR, National Discretion, IRB Approach

    Related Articles
    News

    PRA Consults on Implementation of Certain Provisions of CRD5

    PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).

    July 31, 2020 WebPage Regulatory News
    News

    EIOPA Report Identifies Key Financial Stability Risks for Insurers

    EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Publishes Risk Dashboard for First Quarter of 2020

    EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Issues Updates on Stress Test Exercise for Banks in EU

    EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.

    July 30, 2020 WebPage Regulatory News
    News

    PRA Proposes Guidance Related to Matching Adjustment under Solvency II

    PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.

    July 30, 2020 WebPage Regulatory News
    News

    MAS Issues Guidance on Dividend Distributions by Banks

    MAS published a statement guidance on dividend distribution by banks.

    July 30, 2020 WebPage Regulatory News
    News

    APRA Updates Guidance on Capital Management for Banks

    APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.

    July 29, 2020 WebPage Regulatory News
    News

    FSB Report Reviews Macro-Prudential Framework and Tools in Germany

    FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.

    July 29, 2020 WebPage Regulatory News
    News

    EBA Urges Firms to Finalize Preparations for End of Brexit Transition

    EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.

    July 29, 2020 WebPage Regulatory News
    News

    SRB on Operational Continuity in Resolution and FMI Contingency Plans

    SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.

    July 29, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5606