PRA Tightens Limit for Large Exposures to Certain French NFCs
PRA published a policy statement (PS24/19) that sets out the final rule on amendments to the Large Exposures Part of the PRA Rulebook (Appendix). The final PS24/19 follows a consultation (CP15/19) that proposed to tighten the large exposure limit to 5% of eligible capital in respect of the exposures of UK global systemically important institutions (G-SIIs) and other systemically important institutions (O-SIIs) to French non-financial corporations (NFCs). This amendment has been made pursuant to Article 395(1) of the Capital Requirements Regulation (CRR). This reciprocates the measure imposed by the Haut Conseil de stabilité financière (HCSF) in France in July 2018. PS24/19 will take effect on January 01, 2020.
Although PRA received no responses to the consultation, it has made one minor change to the draft rule-making instrument (Rule 5.1) to remove possible ambiguity about the scope of application. PRA considers that this will have no impact on firms and, specifically, mutuals. The measure described in PS24/19 applies on a consolidated basis to the firms identified by PRA as G-SIIs and O-SIIs, under the Capital Requirements Directive (CRD) as implemented in the Capital Requirements (Capital Buffers and Macro-prudential measures) Regulations 2014. PS24/19 is, therefore, relevant to such firms and their subsidiaries.
The policy set out in this PS24/19 has been designed in the context of the current UK and EU regulatory framework. PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework, including those arising once any new arrangements with EU take effect. In the event that UK leaves EU with no implementation period in place, PRA has assessed that the rule attached to PS24/19 would need to be amended under the EU (Withdrawal) Act 2018. Post the withdrawal of UK from EU, PS24/19 should be read in conjunction with the supervisory statement SS2/19 on PRA approach to interpreting reporting and disclosure requirements and regulatory transaction forms.
Related Links
Effective Date: January 01, 2020
Keywords: Europe, UK, France, Banking, Large Exposures, CRR, CRD, PRA Rulebook, HCSF Measure, G-SII, O-SII, PS24/19, CP15/19, Concentration Risk, 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.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
MAS on Financial Sector Cooperation Between Singapore and ChinaRelated Articles
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
IOSCO Welcomes Work on Sustainability-Related Corporate Reporting
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
BoE Allows One-Day Delay in Statistical Data Submissions by Banks
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
ACPR Amends Reporting Module Timelines Under EBA Framework 3.2
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
APRA to Modernize Prudential Architecture, Reduces Liquidity Facility
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.
