Geopolitical risk is no longer just a “watch-list” issue. It is becoming a core risk management expectation for banks. While supervisors and industry bodies have not prescribed a single framework, the direction of travel is clear: banks are increasingly expected to show how geopolitical risk is identified, assessed, governed, stress-tested and translated into risk appetite, strategy and business decisions. This article digs deeper into the topic.

The PRA has published Policy Statement 15/26, concluding the first phase of a two-stage review of its Pillar 2A methodologies and supporting guidance. This article summarises the impact for firms.

Explore how exposure sub-classifications shape risk weights under the Basel 3.1 real estate framework. Test different scenarios and see how individual factors drive the outcome.

For illustrative and educational purposes only. Not a substitute for formal regulatory analysis.

Regulatory reporting has traditionally been viewed by banks as a necessary but resource-intensive compliance exercise. However, with the introduction of Basel 3.1 and the UK’s Simplified Capital Regime, firms are now presented with a timely opportunity to re-think their approach. Rather than treating regulatory change as a constraint, firms can instead use it as a catalyst for a broader transformation that drives improvements in governance, data quality, systems, and overall operational efficiency.

On 17 April 2026, the PRA published its Business Plan for the 2026/27 financial year, which sets out the PRA’s strategic priorities and confirms its continued focus on safety and soundness and policyholder protection, alongside a proportionate and efficient approach to regulation. Over the year ahead, the PRA will continue to embed key reforms, including the implementation of Basel 3.1, the Strong and Simple framework for smaller banks (SDDTs), and enhancements to operational resilience.

Katalysys is proud to announce its appointment to the PRA/FCA Consultancy and Skilled Person Framework for Lot T (Risk and Risk Management), following a rigorous tender process.

This appointment reflects the depth and breadth of the work we have delivered for firms across complex risk and risk management matters, demonstrates our subject matter expertise, and underscores our continued commitment to regulatory excellence.

The PRA published three coordinated policy statements on 26 March 2026 (PS9/26, PS10/26, PS11/26), recalibrating the UK's resolution and recovery framework. For small and mid-tier banks, the changes bring tangible benefits, but the bar for preparedness is not falling. We summarise what's changing, what it means, and what firms should do now.

Basel 3.1-compliant capital stress testing tool

The PRA's final rules on operational incident and third-party reporting (PS7/26) take effect in March 2027. We summarise the key requirements and what firms need to prepare.

The PRA’s latest consultation (CP5/26) marks a notable evolution in the UK liquidity framework.

Rather than increasing quantitative requirements, focus is shifting toward liquidity usability and operational readiness, reflecting lessons from recent market events and the accelerating impact of digital banking on deposit behaviour.

Katalysys had convened a consortium of non-systemic banks to jointly develop a credible, practical, and proportionate framework for climate-related financial risk assessment.

The work program is designed to fully address the immediate requirements of SS 5/25 - namely a comprehensive gap analysis, board education, and a credible & ambitious remediation plan.

On 19 February 2026, the PRA published CP3/26, setting out proposed amendments to the PRA Rulebook to reflect the implementation of HM Treasury's Overseas Prudential Requirements Regime (OPRR).

On 20 January 2026, the PRA published PS1/26, finalising Basel 3.1 rules and related policy materials. The package largely confirms the near-final policy, with minor clarifications. This article provides an overview of the final rules. This article provides an overview of the final UK Basel 3.1 rules.

This article outlines the key changes to the calculation of Credit valuation adjustment and counterparty credit risk, as part of the Basel 3.1 final rules (PS1/26).

This article highlights the key changes to real estate exposures under the standardised approach to credit risk, as set out in the final Basel 3.1 rules (PS1/26).

This article highlights the key changes to the calculation of own funds requirement for operational risk, as set out in the final Basel 3.1 rules (PS1/26).

This article highlights the key changes to exposures to corporates under the standardised approach to credit risk, as set out in the final Basel 3.1 rules (PS1/26).

This article highlights the key changes to the retail exposure class under the standardised approach to credit risk, as set out in the final Basel 3.1 rules (PS1/26).

This article outlines the changes relating to exposures to institutions under the standardised approach of credit risk, as part of the Basel 3.1 final rules (PS1/26).

This article outlines the key changes to the calculation of market risk capital requirements as part of the Basel 3.1 final rules (PS1/26).