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.

Basel 3.1-compliant capital stress testing tool

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).

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

This article outlines the reporting changes, as set out in the final Basel 3.1 rules (PS1/26).

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.

This article highlights the key changes to the treatment of off-balance sheet items under the standardised approach to credit risk, as set out in the final Basel 3.1 rules (PS1/26).

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.

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.

As part of PS9/24, the PRA announced an off-cycle review of Pillar 2 capital requirements to address double-counting, rebase Pillar 2A, and mitigate unintended impacts from changes in Pillar 1 RWAs. Although delayed, the process has now resumed with revised reference dates. Firms must provide specified information as at 31 December 2025, with submissions due by 31 March 2026.

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.