PRA Removes References to LIBOR in SoP on Pillar 2 Capital and SS20/15
PRA published a policy statement (PS3/20) that provides updates to certain supervisory statements (SS20/15, SS28/15, and SS35/15) and statements of policy (SoP). The proposals on these updates were covered in Chapters 2 and 3 of an occasional consultation paper CP25/19. The proposals in chapter 2 were to update SS20/15 on supervising building societies’ treasury and lending activities (Appendix 1) and Statement of Policy on the methodologies for setting Pillar 2 capital (Appendix 2) to remove references to the London Inter-Bank Offered Rate (LIBOR). In chapter 3, PRA proposed to update certain redundant references and make minor corrections to SS28/15 on strengthening individual accountability in banking (Appendix 3) and to SS35/15 on strengthening individual accountability in insurance (Appendix 4). PRA received no responses to these chapters of CP25/19 and has, therefore, made no changes to the draft policy.
PS3/20 will take effect from its date of publication. The policy set out in PS3/20 has been designed in context of the Brexit and the entry of UK into the transition period, during which time the UK remains subject to European law. PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework at the end of the transition period, including those arising once any new arrangements with the EU take effect. PRA has assessed that the proposals would not need to be amended under the EU (Withdrawal) Act 2018 at the end of the transition period.
PRA plans to publish feedback and final policy for chapter 5 of the CP25/19, alongside the final policy for CP21/19 on probability of default and loss given default estimation under credit risk at a later date, as both consultations proposed changes to SS11/13 on the internal ratings-based approaches.
Related Links
Effective Date: February 24, 2020
Keywords: Europe, UK, Banking, Insurance, Securities, PS 3/20, CP 25/19, Pillar 2, IRB Approach, Credit Risk, LIBOR, PRA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
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
G20 Publishes Communiqué on Its February Meeting in Saudi ArabiaRelated Articles
|
News
APRA on Changes to Reporting Obligations for Banks Due to COVID-19APRA, in collaboration with the Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS), published a letter outlining temporary changes in reporting obligations for authorized deposit-taking institutions and registered financial corporations, in response to COVID-19.
April 01, 2020
WebPage
Regulatory News
|
|
News
OSFI Outlines Capital Treatment for Some COVID-19 Mitigation MeasuresOSFI issued a letter outlining how federally regulated banks should treat the new capital made available to small and medium-size enterprises (SME) through the recently announced government programs.
March 30, 2020
WebPage
Regulatory News
|
|
News
APRA Announces Deferral of Capital Reform ImplementationAPRA announced that it is deferring the scheduled implementation of Basel III reforms in Australia by one year.
March 30, 2020
WebPage
Regulatory News
|
|
News
BaFin Explains Regulatory Measures to Address Impact of COVID-19BaFin has released new developments and important information about COVID-19 and its effects on the financial and banking system.
March 30, 2020
WebPage
Regulatory News
|
|
News
ECB Updates Recommendation on Dividend Distribution Policy of BanksECB updated its recommendation to banks on dividend distributions.
March 30, 2020
WebPage
Regulatory News
|
|
News
EC Amends Implementing Standards on Supervisory Reporting Under CRREC published Regulation 2020/429 that amends the Regulation 680/2014, which sets out implementing technical standards on supervisory reporting of institutions under the Capital Requirements Regulation or CRR (575/2013).
March 30, 2020
WebPage
Regulatory News
|
|
News
HKMA Announces Deferral of Implementation of Final Basel III PackageHKMA announced its plans to defer the implementation of final Basel III package, inline with the timeline announced by the Group of Central Bank Governors and Heads of Supervision (GHOS).
March 30, 2020
WebPage
Regulatory News
|
|
News
BCBS Defers Implementation of Final Basel III Standards by One YearBCBS has announced deferral of the implementation date of the final Basel III standards by one year, to January 01, 2023.
March 27, 2020
WebPage
Regulatory News
|
|
News
EC Regulation on CCR Mitigation for Covered Bonds and SecuritizationsEC published the Delegated Regulation 2020/447 with regard to regulatory technical standards on the specification of criteria for establishing the arrangements to adequately mitigate counterparty credit risk, or CCR, associated with covered bonds and securitizations.
March 27, 2020
WebPage
Regulatory News
|
|
News
IFRS Publishes Statement on Its Work During the COVID-19 CrisisIFRS, in its statement, emphasized that it shares global concerns about the impact of COVID–19 and is supporting its stakeholders by reconsidering timelines of its meetings and publications, providing information on the application of IFRS 9 on financial instruments, and offering calendar updates on ongoing activities.
March 27, 2020
WebPage
Regulatory News
|
