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UK Basel 3.1: Overview of the final rules

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.

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.

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 27/09/2024 Alvin Abraham 27/09/2024

Simplified Capital Regime for Small Domestic Deposit Takers (SDDTs) - Superseded

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.

Alvin Abraham 20/09/2024 Alvin Abraham 20/09/2024

UK Basel 3.1: Credit risk standardised approach – exposures to multilateral development banks (MDBs)

This article outlines the changes to exposures to MDBs under the standardised approach of credit risk, as part of UK’s implementation of Basel 3.1 (PS9/24).

Alvin Abraham 20/09/2024 Alvin Abraham 20/09/2024

UK Basel 3.1: Credit risk standardised approach – off-balance sheet items

This article provides an overview of the near-final rules regarding the off-balance sheet items under the standardised approach, as part of the UK's implementation of Basel 3.1 (PS9/24).

Alvin Abraham 16/09/2024 Alvin Abraham 16/09/2024

UK Basel 3.1: Near-final Rules Part 2 (PS9/24) - Key Changes

On 12 September 2024, the Prudential Regulation Authority (PRA) published the second part of its near-final rules on the implementation of Basel 3.1 standards through Policy Statement 9/24 (PS9/24). This article focuses on the key changes in comparison to the PRA’s earlier consultation paper(s), in each of the major risk areas.

Alvin Abraham 22/12/2023 Alvin Abraham 22/12/2023

UK Basel 3.1: Near-final rules Phase 1 (PS17/23)

On 12 December 2023, the Prudential Regulation Authority (PRA) published near-final rules on the implementation of Basel 3.1 standards through Policy Statement 17/23 (PS17/23). PS17/23 covers near-final rules on market risk; credit valuation adjustment (CVA) and counterparty credit risk (CCR); operational risk; interactions with the PRA’s Pillar 2 framework; and, re-denominate currency references to pound sterling (GBP).