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
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Related Articles
APRA Updates Validation and Derivation Rules in September 2020
APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
EC Proposes Frameworks for Crypto-Assets and Operational Resilience
EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.
ECB Publishes Opinion on Proposals to Amend Securitization Framework
ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.
FCA Consults on Regulation of International Firms in UK
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS Amends Notice on Capital Adequacy Requirements of Banks
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA to Begin to Move Firms to New Data Collection Platform RegData
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
ISDA Expects IBOR Fallbacks to be Effective by End of January 2021
ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.
APRA Reviews Repayment Deferral Plans, Identifies Best Practices
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs Assess Risks to Financial Sector After COVID-19 Outbreak
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE Confirms Withdrawal of COVID Corporate Financing Facility
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.
