PRA Proposes Reporting Amendments to Pillar 2 Liquidity Framework
PRA proposed (CP6/19) regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK. This consultation closes on April 19, 2019. Additionally, PRA published version 4 of the PRA110 questions and answers (Q&As), which supersedes the version that was published on December 14, 2018.
Following a review of the feedback received on PRA110 reporting template and instructions, PRA considers that updates to the template and reporting instructions are needed. In light of this and to reflect the review of PRA, CP6/19 sets out proposals to make amendments to PRA110 template and instructions. PRA has also reviewed certain aspects of Pillar 2 liquidity and sets out proposals for updates to reporting requirements for non-EU European Economic Area banks; expectations under the supervisory statement SS24/15; the approach to cash flow mismatch risk; and the Regulatory Reporting Part of the PRA Rulebook. The proposed changes would be implemented through amendments to the following:
- Regulatory Reporting Part of the PRA Rulebook (Appendix 1)
- Statement of Policy on Pillar 2 liquidity (Appendix 2)
- SS24/15 on approach to supervising liquidity and funding risks (Appendix 3)
- SS34/15 on guidelines for completing regulatory reports (Appendix 4)
- PRA110 reporting template (Appendix 5)
- PRA110 reporting instructions (Appendix 6)
The proposed implementation date for Annex A (as explained in Appendix 1 of CP6/19) in the draft PRA Rulebook is July 01, 2019. Additionally, the proposed implementation date for the updated PRA110 reporting template and instructions and for Annex B (as explained in Appendix 1 of CP6/19) in the draft PRA Rulebook is January 01, 2020. CP6/19 is relevant to UK banks, building societies, PRA-designated investment firms, and non-EU European Economic Area banks.
Related Links
- Notification
- CP6/19 (PDF)
- Amendments to PRA110 Template (XLSX)
- Q&As on Reporting (PDF)
- Reporting of PRA110
Comment Due Date: April 19, 2019
Keywords: Europe, UK, Banking, Reporting, Pillar 2 Liquidity, CP6/19, PRA110, Q&A, Cash Flow Mismatch Risk, Liquidity Risk, Basel III, 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.
Karen Moss
Senior practitioner in asset and liability management (ALM) and liquidity risk who assists banking clients in advancing their treasury and balance sheet management objectives
Previous Article
IMF Report Examines Measures for NPL Resolution in CyprusRelated 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.
