Hosted by UK Finance, Katalysys is pleased to announce a training programme, “The Basel Breakthrough: Future-Proofing Regulatory Reporting for 2027”, aimed at equipping banks and financial institutions with the knowledge, tools and strategies to navigate the forthcoming Basel 3.1 reforms.

The PRA’s new CP21/25 proposes deleting 34 FINREP, 2 COREP, and PRA109 templates – a push to make regulatory reporting more proportionate and less duplicative—a welcome shift toward simplification and efficiency.

In April, the PRA published Consultation Paper 10/25 proposing updates to its supervisory expectations on climate-related financial risks (CRFR). This marks a step-change from SS3/19, enhancing requirements in areas such as governance, risk management, scenario analysis, data, and disclosure.

For small and medium-sized UK banks, these proposals are not only about compliance, but also a chance to embed climate resilience in business strategy, protect value, and build long-term competitive strength.

The PRA published a Policy Statement on 17 July 2025, outlining proposals to implement the remaining Basel large exposures standards (LEX standards). A key change for small and medium-sized banks is the proposed removal of CRM eligibility for immovable property, meaning exposures secured by immovable properties would no longer qualify for CRM under Large Exposures.

In early July, the PRA issued several policy statements and consultation papers with implications for banks of all sizes. We've summarised the key developments and outlined their practical impact across firm types.

The PRA published Policy Statement PS6/25, outlining measures to strengthen the supervision of branches and subsidiaries of foreign banks, while supporting the UK’s competitiveness.

The PRA has published Consultation Paper 12/25, marking the first phase of a two-stage review of its Pillar 2A methodologies and supporting guidance. This consultation seeks to address the consequential impacts of the PRA’s near-final rules for implementing the Basel 3.1 standards, while also providing additional clarity on its Pillar 2A methodologies.

As part of PS7/25, the PRA has published further details on its approach for calculating SME and infrastructure lending adjustments.

Arriving hot on the heels of our earlier article on what the 2025 Bank Capital Test Means for small- and medium-sized banks, the Prudential Regulation Authority (PRA) has quietly published an accompanying set of stress parameters. These include both rates-up (supply shock) and rates-down (demand shock) scenarios, and can serve as a useful benchmark for firms not participating in concurrent stress testing. They may be particularly helpful for use in internal stress testing exercises, including within the Internal Capital Adequacy Assessment Process (ICAAP).

With the Bank of England’s 2025 Bank Capital Stress Test now in motion, small and medium-sized banks should take note. While only the large banks participate directly, it is nonetheless of interest for other firms as they approach their next stress testing exercise. The latest publications bring stress parameters up to date from the 2024 Desk-based Stress Test, and some elements have changed. This article explores what banks can take away from the latest stress programme and how to reflect those developments in their own risk management processes.