Implications of PRA’s Basel 3.1 proposals on all firms
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Implications of PRA’s Basel 3.1 proposals
We have taken an additional look at certain aspects of Basel 3.1 changes and their potential impact on firms.
As a part of the review, we have delved into each of these areas, exploring how these changes may influence firms’ capital requirements, and how the Prudential Regulation Authority (PRA) is diverging from the European Central Bank (ECB) and even the Basel standards.
Click on the PDF below to read our comprehensive review.
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If you have any further questions regarding Basel 3.1, please contact us via the button below and a member of our team will be in touch.
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Gregory Marchat Partner, Group head of financial services advisory - London
Understanding Basel 3.1
On 1 January 2026, the Prudential Regulation Authority (PRA) is implementing the biggest changes to the capital regime for banks in over a decade. This reform package is commonly known as Basel 3.1.
UK vs EU Basel comparison
Both the UK and the EU are consulting on the next wave of iterations to the Basel reforms. Whilst the focus of these consultations has been relatively broad, the rules around the computation of Pillar 1 Credit Risk RWAs seen the most significant change. This article outlines some of the main differences between the UK and EU approaches on this topic, along with our thoughts on these divergences.