PRA Proposes to Delay Termination of Reports FSA047 and FSA048
PRA is proposing (CP22/18) to delay termination of the existing "daily flows" and "enhanced mismatch" liquidity reports (FSA047 and FSA048) by six months. The purpose of the proposed change is to mitigate risks to the supervision of liquidity in the initial period, following the introduction of the new PRA110 report on July 01, 2019. This consultation closes on November 12, 2018 and is relevant to banks, building societies, and PRA-designated investment firms.
PRA does not propose changing the implementation date of the PRA110. These proposals would be delivered by amendments to the Reporting Part of the PRA Rulebook (Appendices 1 and 2) and an update to Supervisory Statement SS34/15 titled "Guidelines for completing regulatory reports" (Appendix 3). The following changes have been proposed to the PRA reporting requirements to:
- Delay terminating the FSA047 and FSA048 for six months (that is, to January 01, 2020)
- Reduce the reporting frequency of the FSA047 and FSA048 reports to align with the PRA110 report, in cases where it would otherwise differ from July 01, 2019
Furthermore, PRA confirms that it is using its new individual risk methodologies as set out in Statement of Policy titled "Pillar 2 liquidity" in liquidity reviews. They are being applied at the current glide path factor. PRA has previously stated its intention to set out proposals on the overall calibration of the liquidity framework in 2018. However, PRA has taken the decision to postpone finalization of its proposals to conduct further analysis on the appropriate level of liquidity guidance. This includes the potential for some recognition in the Pillar 2 liquidity framework of the ability to draw on BoE liquidity facilities, where firms have access arrangements and appropriate collateral in place.
Related Links
Comment Due Date: November 12, 2018
Keywords: Europe, UK, Banking, Reporting, Pillar 2 Liquidity, CP22/18, FSA047, FSA048, 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.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
EIOPA Publishes Results of the 2018 Insurance Stress TestRelated Articles
EBA Finalizes Remuneration Standards for Investment Firms in EU
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
ECA Recommends Actions to Enhance Resolution Planning for Banks
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE Publishes Key Elements of the 2021 Stress Testing for Banks in UK
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA Proposes Rules on Identity Verification of Depositor Protection
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB Publishes Work Program for 2021
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA Issues Update on Move to New Data Collection Platform
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank Publishes Derivation Rules for Reporting by Banks
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED Revises Capital Planning and Stress Testing Requirements for Banks
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs Publish Reporting Templates for Financial Conglomerates
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
