30 Nov 2022

The latest consultation paper from the PRA outlines proposals for the remaining Basel III standards to be implemented in the UK.

  • Banking regulatory reporting

The Prudential Regulatory Authority (PRA) has published a new consultation paper, CP16/22, which outlines its proposals and expectations for parts of Basel III standards that haven’t yet been implemented in the UK.

The 'Basel 3.1 standards’ and are relevant to all PRA-regulated banks, building societies, investment firms and financial holding companies.

As well as the proposals, the CP contains revised criteria regarding which firms will be in scope of the future regime.

These are the final banking prudential reforms due to be implemented in response to the global financial crisis, developed by the Basel Committee on Banking Supervision (BCBS).  They have been produced to help improve measurement of risk and reduce variability when firms are calculating risk weights. This will make firms’ capital ratios consistent and more easily comparable.

The consultation period ends on 31 March 2023 and the proposed implementation date for the changes is January 2025, giving firms plenty of time to prepare.

Find more details here or read the consultation paper in full.