Featured Insights

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.

Katalysys’ new training with UK Finance on Basel 3.1 implementation

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.

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).

Anindya Ghosh chowdhury 10/11/2025 Anindya Ghosh chowdhury 10/11/2025

The Capital Constraint: Why UK Banks Struggle to Turn Strength into Growth

Firms are required to hold regulatory capital to absorb losses. However, banks in the UK often feel that they are holding heightened levels of regulatory capital, which is stifling their potential for evolution and expansion.

Manish Patidar 18/07/2025 Manish Patidar 18/07/2025

PS14/25 – Large Exposures Framework - Key changes

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.

Alvin Abraham 30/09/2024 Alvin Abraham 30/09/2024

CP8/24 – Restatement and minor amendments to CRR rules relating to the definition of own funds

The Prudential Regulation Authority (PRA) published Consultation Paper 8/24 ‘Definition of Capital: restatement of CRR requirements in PRA Rulebook’ (CP8/24) covering various matters relating to own funds including revocation by HM Treasury (HMT) of related rules set out in inter alia Regulation (EU) No 575/2013 (the CRR) and transferring them, with certain modifications, into the PRA Rulebook.