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

    EC Delegated Regulation on Specialized Lending Exposures Under CRR

    EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.

    April 14, 2021 WebPage Regulatory News
    News

    OSFI Consults on Minimum Qualifying Rate for Uninsured Mortgages

    OSFI is proposing new minimum qualifying rate for uninsured mortgages under the Guideline B-20.

    April 13, 2021 WebPage Regulatory News
    News

    ECB Updates List of Supervised Entities in EU in April 2021

    ECB updated the list of supervised entities in EU, with the number of significant supervised entities amounting to 115 as of the March 01, 2021 cut-off date.

    April 12, 2021 WebPage Regulatory News
    News

    OSFI Issues Letter on ICAAP Submission and Internal Audit of BCAR

    OSFI issued a letter to confirm that a formal Internal Capital Adequacy Assessment Process (ICAAP) submission is not required in 2021.

    April 12, 2021 WebPage Regulatory News
    News

    EC Agrees to Prolong Scheme to Support NPL Reduction at Greek Banks

    EC has approved the prolongation of an existing Greek scheme aiming to support the reduction of nonperforming loans, or NPLs, of Greek banks on the basis that it remains free of any State aid.

    April 09, 2021 WebPage Regulatory News
    News

    EIOPA Study Examines Internal Model Market and Credit Risks Under SII

    EIOPA published a report presenting the results of its yearly study on the internal modeling of market and credit risks under the Solvency II Directive, also known as SII.

    April 09, 2021 WebPage Regulatory News
    News

    ESMA Issues Notification Templates for STS Synthetic Securitizations

    ESMA published the interim simple, transparent, and standardized (STS) notification templates for synthetic securitizations, post the recent amendments to the Securitization Regulation.

    April 09, 2021 WebPage Regulatory News
    News

    EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    EBA Updates Lists of Entities for Use in Capital Calculations under SA

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    FED Proposes to Automate Bank Stock Adjustment Using Call Report Data

    FED published a proposal to automate non-merger-related adjustments to member banks' subscriptions to Federal Reserve Bank capital stock.

    April 08, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6835