Featured Insights

SS 5/25: Approaches to managing climate related risks

The Prudential Regulation Authority (PRA) has published its final Policy Statement PS25/25 and SS 5/25 on climate-related financial risks on 3 December 2025.

We have broken down the Supervisory Statement into a set of 41 expectations that non-systemic banks will need to proportionately consider.

Basel 3.1 Implementation Guide

Katalysys recently hosted a roundtable in collaboration with UK Finance and representatives from the PRA, where we discussed the practical challenges firms are facing in preparing for implementation. Based on those discussions and our ongoing work supporting several institutions with Basel 3.1 readiness, we have produced a white paper focusing on the key areas of implementation that carry the greatest risk.

How Severe Should a Liquidity Stress Test Be?

Liquidity stress testing remains a cornerstone of effective risk management and regulatory compliance for banks. However, a persistent challenge lies in interpreting what constitutes a “severe but plausible” stress scenario, particularly in the context of evolving depositor behaviours and increasing digitalisation of banking.

This paper aims to address this challenge by examining how stress scenarios can be robustly calibrated using empirical evidence backed by statistical methods, with particular focus on liquidity stress testing informing the Internal Liquidity Adequacy Assessment Process (ILAAP).

Alvin Abraham 15/09/2024 Alvin Abraham 15/09/2024

UK Basel 3.1: Reporting changes

This article outlines the reporting changes, as part of UK’s implementation of Basel 3.1 (PS9/24).

Alvin Abraham 12/03/2024 Alvin Abraham 12/03/2024

Solvent exit planning for non-systemic banks (SS2/24)

PRA in the supervisory statement SS2/24 outlines requirements around solvent exit planning and execution. This article summarises the requirements and provides specific action points that small- and medium-sized banks can consider to implement these requirements.

Alvin Abraham 07/07/2023 Alvin Abraham 07/07/2023

Solvent exit planning for non-systemic banks (CP10/23)

PRA in the consultation paper CP10/23 outlines requirements around solvent exit planning and execution. This article summarises the requirements and provides specific action points that small- and medium-sized banks can consider to implement these requirements.

Alvin Abraham 14/03/2023 Alvin Abraham 14/03/2023

CP6/23 - The non-performing exposures capital deduction

This article outlines reporting changes proposed as part of CP6/23 - ‘The non-performing exposures capital deduction’.

Alvin Abraham 01/12/2022 Alvin Abraham 01/12/2022

Simpler-regime Firm (SRF) CP16/22 updates

PRA consultation paper CP5/22 proposes an introduction of a simpler regime and simplified prudential requirements for non-systemic banks and building society. In CP5/22, the PRA have proposed a definition for ‘Simpler-regime Firm’ (SRF).

Alvin Abraham 30/04/2022 Alvin Abraham 30/04/2022

CP5/22 - Simpler-regime Firm (SRF)