PRA Publishes Policy Statement PS2/18 on Pillar 2 Liquidity
PRA published the policy statement PS2/18 that provides feedback to CP21/16 and CP13/17 on Pillar 2 liquidity. PS2/18 on Pillar 2 liquidity includes Statement of Policy (SoP) on Pillar 2 liquidity, an update to SS24/15 on the PRA approach to supervising liquidity and funding risks, a final PRA110 template and reporting instructions, a final amendment to the Reporting Part of the PRA Rulebook, and an update to SS34/15 on the guidelines for completing regulatory reports.
In CP21/16 and CP13/17, PRA proposed to use the methodologies consulted on, in future PRA liquidity assessments; introduce a cash flow mismatch risk (CFMR) framework and associated reporting template (PRA110) from January 01, 2019; and set survival guidance on the granular Liquidity Coverage Requirement (LCR) stress within the CFMR framework. PS2/18 is relevant to UK banks, building societies, and PRA-designated investment firms. The SoP on Pillar 2 liquidity (Appendix 1), the updated SS24/15 on the PRA approach to supervising liquidity and funding risks (Appendix 2), and the updated SS34/15 on guidelines for completing regulatory reports (Appendix 5) will take effect from February 23, 2018. The PRA110 template and reporting instructions (Appendix 3) and the Reporting Part of the PRA Rulebook (Appendix 4) will take effect from July 01, 2019.
Related Links
- Notification
- PS2/18 (PDF)
- SoP on Pillar 2 liquidity
- SS24/15
- SS34/15
- PRA110 Template
- PRA Rulebook: Regulatory Reporting PRA110
Effective Date: February 23, 2018 (SoP, SS24/15, SS34/15); July 01, 2019 (PRA110 Reporting)
Keywords: Europe, UK, Banking, PS2/18, Pillar 2, Liquidity Risk, Reporting, 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.
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
Previous Article
DNB Issues Additional Data Quality Checks for Third Quarter of 2019Next Article
ESMA Publishes its Annual Report for 2017Related 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.