Featured Product

    PRA Tightens Limit for Large Exposures to Certain French NFCs

    October 15, 2019

    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
    Related Articles
    News

    HKMA Finalizes Policy Modules on Group-Wide Approach and Remuneration

    The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.

    July 29, 2021 WebPage Regulatory News
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    ECB Study Assesses Impact of Basel III Finalization Package

    The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.

    July 26, 2021 WebPage Regulatory News
    News

    ISDA Finds FRTB Results in Higher Capital Charges for Carbon Trading

    The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.

    July 26, 2021 WebPage Regulatory News
    News

    PRA Updates Remuneration Policy Statement Templates and Tables

    The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.

    July 26, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7307