Expectations ahead of final Basel 3.1 rules

Pending the release of the PRA’s Basel 3.1 final rules, our banking risk experts discuss the proposed changes to credit risk and output floor rules, as well as the near-final rules relating to market risk and operational risk.

Listen back to the first webinar in our Basel 3.1 series where our banking risk specialists discuss how the rules may impact UK banks and building societies.

 

Key takeaways

For the Credit Risk and Output Floor proposals, which have not yet received near-final policy statements from the regulatory authorities, our understanding is that there remains a possibility that significant changes to the Consultation Paper (CP16/22) are made. This is because the PRA have recently been making increasing noise about ensuring the ‘international competitiveness’ of the UK’s approach. This contrasts with the language used by the regulator around the time of CP16/22’s release where greater focus appeared to be on ensuring material compliance with the underlying Basel proposals. 

For Operational Risk, Market Risk and CVA, which were covered in PS17/23 and are therefore ‘near final’, there is less scope for the PRA to deviate from their proposals. However, this should be caveated with the fact that until HMT provide final sign-off (expected later this year) the regulator continues to have wriggle room.

Speakers

  • Huseyin Sahin, Partner Banking Risk Consulting
  • Nicolas Cerrajero, Partner, Quantitative Solutions
  • Freddie Blake, Associate Director, Banking Risk Consulting
  • Moderated by Breda Griffin, Director, Banking Risk Consulting

Get in touch

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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Basel 3.1 series

This webinar series will provide insight and analysis of the PRA’s implementation of Basel 3.1. The rest of the series will take place following the release of the outstanding final policy rules on Basel 3.1 by the PRA. 

 

Key contacts