October 03, 2017

The PRA published the policy statement PS22/17, which provides feedback to responses to the consultation paper CP3/17 titled "Refining the PRA’s Pillar 2A capital framework." The PS22/17 contains the final amendment to the Reporting Pillar 2 Part of the PRA Rulebook (Appendix 1), along with the updates to the supervisory statements SS31/15 titled "The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP)" (Appendix 2); SS32/15 titled "Pillar 2 reporting, including instructions for completing data items FSA071 to FSA082" (Appendix 3); and statement of policy titled "The PRA’s methodologies for setting Pillar 2 capital" (Appendix 4).

In CP3/17, the PRA had made proposals related to adjustments to the PRA’s Pillar 2A approach for firms using the standardized approach for credit risk; revisions to the PRA’s internal ratings-based benchmark used for assessing credit risk; and additional considerations the PRA will make, as part of the SREP, for standardized approach firms using International Financial Reporting Standard (IFRS) as their accounting framework. The SS31/15 replaces SS5/13 and SS6/13 and is aimed at firms to which the Capital Requirements Directive (CRD) IV applies. It provides further detail in relation to the high-level expectations outlined in "The PRA's approach to banking supervision." The SS32/15 is of interest to banks, building societies, and PRA-designated investment firms. It sets out the PRA’s expectations of firms and provides further clarity on Pillar 2 reporting. It was updated to reflect amendments to the reporting requirements for data items FSA076 and FSA077 to remove reference to reporting on an ad-hoc or case-by-case basis. The statement of policy sets out methodologies that the PRA uses to inform the setting of Pillar 2 capital for firms to which CRD IV applies.

 

Related Links 

Keywords: Europe, UK, Banking, Pillar 2A, ICAAP, Reporting, SREP, CRD IV, PS22/17, SS31/15, CP3/17, PRA

Related Articles
News

BIS Report Discusses Regulatory Issues Related to Big Techs in Finance

BIS has pre-released a chapter of the BIS Annual Economic Report; this chapter focuses on the risks and opportunities presented by large technology firms (big techs) in the financial services sector.

June 23, 2019 WebPage Regulatory News
News

IOSCO Report Examines Liquidity in Corporate Bond Markets

IOSCO published a report that examines the factors affecting liquidity, under stressed conditions, in the secondary corporate bond markets.

June 21, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Third Update for June 2019

Under the Single Rulebook question and answer (Q&A) updates for this week, EBA published one answer regarding the calculation of institution-specific countercyclical capital buffer rates.

June 21, 2019 WebPage Regulatory News
News

HKMA Publishes Banking Exposure Limits Code Under Banking Ordinance

HKMA issued a circular to all authorized institutions informing that the Banking (Exposure Limits) Code has been published in the Gazette on June 21, 2019.

June 21, 2019 WebPage Regulatory News
News

BCBS Report Examines Global Pillar 2 Supervisory Review Practices

BCBS published a report that examines the Pillar 2 supervisory review practices and approaches in Basel member jurisdictions.

June 21, 2019 WebPage Regulatory News
News

FED Publishes Results of the 2019 Stress Tests for Banks

FED published a report presenting results of the Dodd-Frank Act Stress Test (DFAST) exercise for 2019.

June 21, 2019 WebPage Regulatory News
News

IASB Publishes Work Plan and Meeting Updates for June 2019

IASB published an updated work plan and a summary of its June meeting, which presents preliminary decisions of the Board.

June 21, 2019 WebPage Regulatory News
News

OSFI Proposes Guideline on Internal Model Oversight for Insurers

OSFI proposed the draft guideline E-25 on the internal model oversight framework for federally regulated property and casualty (P&C) insurance companies.

June 21, 2019 WebPage Regulatory News
News

BCBS Publishes Summary of the Meeting in June 2019

BCBS published a summary of its June meeting in Basel.

June 20, 2019 WebPage Regulatory News
News

OCC Bulletin on Risk Management Guidance for Home Mortgage Lending

OCC published Bulletin 2019-28 on risk management guidance for higher-loan-to-value (LTV) lending activities in communities targeted for revitalization.

June 19, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3298