PRA Consults on PRA110 Reporting Frequency Threshold
PRA proposed (CP14/19) to amend the reporting frequency of PRA110 reporting template (PRA110) when a firm is in stress. The consultation closes on September 27, 2019 and the proposed implementation date for the proposal in CP14/19 is May 01, 2020. PRA also published Version 6 of questions and answers (Q&A) on the PRA110 reporting template and instructions, with the new or updated Q&A appearing in italics and under the PRA110 row/column to which they refer, where possible. The Q&A update adds responses to questions related to LCR weights.
PRA proposes to introduce a rule to require firms with total assets of GBP 5 billion or above, calculated in accordance with Council Directive 86/635/EEC, to submit the PRA110 reporting template every business day in the event of a firm-specific liquidity stress or market liquidity stress. As a consequence of the proposed change to the reporting frequency threshold, PRA also proposes an update to the supervisory statement SS24/15 (paragraph 6.2A) to align with the proposed threshold. The proposals in CP14/19 would also amend the Regulatory Reporting Part of the PRA Rulebook (Appendices 1 and 2).
The proposals are based on the UK and EU regulatory framework as it currently stands. PRA has assessed that the proposals will be affected in case of a no-deal Brexit. A second version of the proposed rules, which includes the relevant changes related to Brexit, has been set out in Appendix 2. PRA110 will come into effect from July 01, 2019, with the frequency of submission (weekly or monthly) determined by each firm’s category. To make it easier for firms and to avoid confusion of overlapping submission dates, interim reporting will finish with the end of May data point (received June 21, 2019). PRA will not be requesting June data (which would be due in July) from any of firms participating in the interim reporting. This will be removed from the GABRIEL submission schedule.
Comment Due Date: September 27, 2019
Effective Date: May 01, 2020 (CP14/19); July 01, 2019 (PRA110)
Keywords: Europe, UK, EU, Banking, Pillar 2, Reporting, Q&A, CP 14/19, SS 24/15, PRA 110, Liquidity Risk, Basel III, PRA
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Senior practitioner in asset and liability management (ALM) and liquidity risk who assists banking clients in advancing their treasury and balance sheet management objectives
Previous ArticleFIN-FSA Amends Regulations and Guidelines on Credit Risk Management
ECB Finds Banks Unprepared for Pillar 3 Climate Risk Disclosures
The European Central Bank (ECB) published results of the 2022 supervisory assessment of climate-related and environmental risk disclosures among significant institutions (103) and a selected number of less significant institutions (28).
NCUA Assesses Credit Union Exposure to Climate-Related Physical Risks
The National Credit Union Administration (NCUA) released a Research Note that examines the exposure of credit unions to climate-related physical risks. In a related development
EBA Issues Multiple Regulatory and Reporting Updates for Banks
The European Banking Authority (EBA) is seeking comments, until July 31, 2023, on the draft Guidelines on the proposed common approach to the resubmission of historical data under the EBA reporting framework.
EC Adopts Regulation on Own Funds, Issues Other Updates
The European Commission adopted Delegated Regulations on own funds and eligible liabilities, on requirements for the internal methodology under the internal default risk model
CDP Platform to Report Plastic-Related Impact, Issues Other Updates
The Carbon Disclosure Project (CDP) announced that its global environmental disclosure platform has enabled reporting on plastic-related impact for nearly 7,000 companies worldwide
IASB to Enhance Reporting of Climate Risks, Proposes IFRS 9 Amendments
The International Accounting Standards Board (IASB) updated its work plan to enhance the reporting of climate-related risks in the financial statements,
BIS Addresses Data Gaps and Macro-Prudential Policy for Climate Risks
The Financial Stability Institute (FSI) of the Bank for International Settlements (BIS) published a brief paper that examines challenges associated with the use of macro-prudential policies to address climate-related financial risks.
FCA Sets Out Business Plan, Launches TechSprint on Greenwashing
The Financial Conduct Authority (FCA) published its business plan for 2023-24. The plan sets out details of the work planned for the next 12 months to achieve better outcomes for consumers and markets
UK Committee Sets Out Recommendations for Next Phase of Open Banking
The Joint Regulatory Oversight Committee (JROC), comprising the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) as co-chairs and the HM Treasury and the Competition and Markets Authority (CMA) as members
ECB Publishes Multiple Regulatory Updates for Banking Institutions
The European Central Bank (ECB) published the results of the 2022 climate risk stress test of the Eurosystem balance sheet,