Featured Product

    PRA Consults on Rules for Domestic Liquidity Sub-Groups

    September 28, 2021

    The Prudential Regulation Authority (PRA) proposed rules on the application of prudential liquidity requirements to domestic liquidity sub-groups. The published consultation paper (CP19/21) also proposed revisions to the approach to granting a domestic liquidity sub-groups permission. The consultation closes on October 12, 2021, with the rule finalization expected in November 2021 and the implementation date for the changes expected to be January 01, 2022.

    Where certain conditions are met on the availability, distribution, management, and monitoring of liquidity, the Capital Requirements Regulation (CRR) allows PRA to waive the application of liquidity requirements at the level of an individual firm and to permit a firm to form a domestic liquidity sub-group; these requirements encompass the liquidity coverage ratio (LCR) and liquidity risk management, monitoring, reporting, and disclosures. Where a domestic liquidity sub-groups permission is granted, PRA requirements apply at the level of a domestic liquidity sub-group on the basis of the consolidated situation of its members, rather than applying to member firms individually. This reflects the ability of some firms to manage their liquidity jointly with other entities, as if they were a single entity. HM Treasury will revoke this provision from Saturday January 01, 2022. CP19/21 proposes to:

    • Permit the inclusion in a domestic liquidity sub-group of firms that are subsidiaries of a common immediate UK qualifying parent undertaking that is not a bank or PRA-designated investment firm (referred to in this consultation as a "sibling domestic liquidity sub-group")
    • Revise the conditions to qualify for a domestic liquidity sub-group permission and the factors that PRA will take into account when considering domestic liquidity sub-group applications

    CP19/21 would result in changes to the Liquidity (CRR) Part of the PRA Rulebook and the Statement of Policy (SoP) titled "Liquidity and funding permissions." This consultation is relevant to PRA-authorized UK banks, PRA-designated UK investment firms, and building societies. It is also relevant to the UK financial or mixed financial holding companies that are the immediate parent undertakings of firms that may be included in a domestic liquidity sub-groups. It is not relevant to credit unions.


    Related Links

    Comment Due Date: October 12, 2021

    Keywords: Europe, UK, Banking, Liquidity Risk, Domestic Liquidity Sub Groups, CRR, Reporting, LCR, Disclosures, Basel, PRA

    Featured Experts
    Related Articles

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582