Bank of England

02/12/2021 | Press release | Distributed by Public on 02/12/2021 08:19

CP5/21 - Implementation of Basel standards

Overview

This Consultation Paper (CP) sets out the Prudential Regulation Authority's (PRA's) proposed rules in respect of the implementation of international standards through a new PRA Capital Requirements Regulation (CRR) rule instrument.

The purpose of these rules is to implement part of the set of international standards that remain to be implemented in the UK. This CP also sets out the proposed new PRA CRR rules in full, including parts of the onshored CRR that are not changing but rather are being transferred into PRA rules (although, where these do not change, they do not form part of this consultation).

This consultation is relevant to banks, building societies, PRA-designated investment firms, and PRA-approved or -designated financial or mixed financial holding companies (firms).

Implementation

The PRA's proposed approach would enable these Basel III standards to be implemented by firms from Saturday 1 January 2022; provide sufficient time for firms to embed the related supervisory reporting; and build on the progress firms have already made towards implementation.

Responses and next steps

This consultation closes on Monday 3 May 2021. The PRA invites feedback on the proposals set out in this consultation, including on the questions at the end of Chapters 3, 6, 8, 12 and 14. The PRA would also welcome firms' views on whether additional and material costs or impacts not identified in Chapter 17 may arise as a result of the proposals. Please address any comments or enquiries to [email protected].

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