PRA Finalizes Policy Amending Certain CRR Rules for Banks
The Prudential Regulation Authority (PRA) published a policy statement (PS7/22) on changes under the Capital Requirements Regulation while the Bank of England (BoE) published a market notice setting out its intention to introduce a Short Term Repo (STR) facility alongside any future sales of gilts from the Asset Purchase Facility (APF).
PS7/22 includes policy changes that fall under the Capital Requirements Regulation (CRR) and Solvency II. The implementation date for the policy changes is September 01, 2022, with certain exceptions. PRA consulted on these changes, via the occasional consultation paper CP3/22, from March 21 to May 10, 2022. PRA received no responses to proposals related to any of the chapters in CP3/22. Given that PRA has not received any responses to its consultation, the analyses, as presented in CP3/22, remain unchanged. Among the changes, CP3/22 set out amendments to leverage ratio framework, CRR rules, and Pillar 3 Liquidity disclosure template and instructions. The appendices to PS7/22 provides final policy material, including the following:
- Amendments to Statement of Policy on PRA’s approach to the publication of Solvency II technical information
- Amendments to SS45/15 on UK leverage ratio framework
- PRA Rulebook: CRR Firms: (CRR 2 and Other Consequentials) Modification Instrument 2022
- Amendments to Statement of Policy on Bank of England (BoE) and PRA approach after the UK’s withdrawal from the EU
- Investment Firms Prudential Regime Amendment Instrument 2022
- PRA Standards Instrument: The Technical Standards (Investment Firms Prudential Regime Consequential Amendments) Instrument
- Amendments to Template UK LIQ2 on net stable funding ratio (NSFR)
- Instructions on Template UK LIQ2 on disclosure of NSFR
- PRA Rulebook: CRR Firms Administration Instrument 2022
Related Links
- Statement on Short Term Repo Facility
- Market Notice on Short Term Repo Facility
- Notification on PS7/22
- PS7/22 (PDF)
Keywords: Europe, UK, Banking, Reporting, PRA Rulebook, CRR, Basel, Leverage Ratio, Disclosures, Pillar 3, NSFR, IFPR, Investment Firms, Regulatory Capital, CP3 22, PS7 22, BoE, 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
ESMA Responds to Consultation on Sustainability Reporting StandardsRelated Articles
OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks
The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
