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 20 January 2026, the PRA published PS4/26, finalising SDDT 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.

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.

Mark Your Calendar: Key Dates for Basel 3.1 and SDDT. It has been approximately three months since the PRA released the second part of its near-final rules for implementing the Basel 3.1 standards in the UK. With the official implementation date of 1 January 2026 less than a year away, the clock is ticking for firms to ensure compliance. While the implementation date of 1 January 2026 is top of mind for many, it is essential not to overlook several key milestones in 2025. These will be particularly relevant both for firms seeking SDDT status and banks navigating Basel 3.1 requirements.

On 12 September 2024, the PRA published Consultation Paper 7/24 (The Strong and Simple Framework: The simplified capital regime for Small Domestic Deposit Takers (SDDTs)) as part of its Phase 2 of announcements, which sets out the proposed simplified capital regime for SDDTs.

The Prudential Regulation Authority (PRA) has introduced the Strong and Simple Framework for domestic banks and building societies that are non-systemic. The banks and building societies that meet the eligibility criteria are classified as Small Domestic Deposit Takers (SDDT) firms.

PRA’s Policy Statement PS15/23 (The Strong and Simple Framework: Scope Criteria, Liquidity and Disclosure Requirements) specifies the finalised SDDT criteria and prudential regulations for features (e.g., liquidity) not relating to capital requirements.