PRA Proposes to Update the Policy on Approach to Systemic Risk Buffer
PRA is proposing minor updates to its Statement of Policy on the PRA approach to the systemic risk buffer (SRB), in its consultation paper CP29/18. The consultation is relevant to ring-fenced bodies within the meaning of section 142A of the Financial Services and Markets Act 2000 (FSMA) and large building societies that hold more than GBP 25 billion in deposits (where one or more of the account holders is a small business) and shares (excluding deferred shares)—jointly known as the "SRB institutions." The consultation closes on December 06, 2018.
Along with the SRB framework, the Statement of Policy forms the Bank’s broader framework for SRB. PRA is proposing to make three minor amendments aimed at clarifying the Statement of Policy and bringing it up-to-date with the recent policy developments:
- Remove the statement that the PRA approach to reviewing the Statement of Policy every two years is mandated by the SRB regulations
- Replace references to CP25/16 with the corresponding PRA Statement of Policy on its methodologies for setting Pillar 2 capital following publication of the final policy
- Include references to the supervisory statement SS45/15 titled "The UK leverage ratio framework," which was recently updated with respect to the application of an additional leverage ratio buffer (ALRB) rate to SRB institutions
SRB is intended to increase the capacity of the UK domestic systemically important ring-fenced bodies and building societies to absorb stresses, thus increasing their resilience relative to the system and promoting the safety and soundness of the PRA-regulated firms. In line with the recommendations of the Independent Commission on Banking, the UK legislation implementing the SRB Regulations requires the Financial Policy Committee (FPC) to establish a framework for an SRB that applies to large building societies and ring-fenced bodies. The SRB Regulations require PRA to apply that framework from January 01, 2019. FPC published "The Financial Policy Committee’s framework for the systemic risk buffer" (the SRB framework) in May 2016.
Related Links
Comment Due Date: December 06, 2018
Keywords: Europe, UK, Banking, Systemic Risk Buffer, SRB Regulation, CP29/18, Ring Fencing, PRA
Previous Article
BCBS Reports to G20 Leaders on Implementation of Basel III ReformsRelated Articles
|
News
PRA Finalizes Reporting Amendments to Pillar 2 Liquidity FrameworkPRA published the final Policy Statement PS13/19 on regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK.
June 17, 2019
WebPage
Regulatory News
|
|
News
IAIS Consults on Revisions to IAIS Supervisory MaterialIAIS has launched a public consultation on revisions to the IAIS supervisory material.
June 14, 2019
WebPage
Regulatory News
|
|
News
IMF Paper on Implementing Prudential Standards in Developing EconomiesIMF published a working paper that provides practical guidance on how developing economies, including non-Basel Committee member countries, could incorporate international standards into their prudential framework.
June 14, 2019
WebPage
Regulatory News
|
|
News
EBA Single Rulebook Q&A: Second Update for June 2019EBA published answers to five questions under the Single Rulebook question and answer (Q&A) updates for this week.
June 14, 2019
WebPage
Regulatory News
|
|
News
FSB Releases Update on Meeting of Regional Consultative Group for AsiaFSB published an update on the meeting of its Regional Consultative Group (RCG) for Asia.
June 14, 2019
WebPage
Regulatory News
|
|
News
BoE, FCA, and MAS Announce Collaboration on Cyber SecurityMAS and UK financial authorities (BoE and FCA) announced that they will work together to strengthen cyber security in their financial sectors.
June 13, 2019
WebPage
Regulatory News
|
|
News
CBIRC Advisory Committee Holds Meeting, Discusses Regulatory IssuesThe first meeting of the International Advisory Committee (IAC) of CBIRC was held in Shanghai from June 11 to 12, 2019.
June 13, 2019
WebPage
Regulatory News
|
|
News
ECB and EIOPA Publish Common Minimum Standards for Data Revision in EUECB and EIOPA published the common minimum standards for supervisory and statistical reporting data by the undertakings in EU.
June 13, 2019
WebPage
Regulatory News
|
|
News
IMF Reports on 2019 Article IV Consultation with Czech RepublicIMF published its staff report and selected issues report under the 2019 Article IV consultation with Czech Republic.
June 13, 2019
WebPage
Regulatory News
|
|
News
APRA Response to Proposal on Revisions to Capital Framework for BanksAPRA published a paper in response to the first round of consultation on proposed changes to the capital framework for authorized deposit-taking institutions.
June 12, 2019
WebPage
Regulatory News
|
