Featured Insights

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 07/12/2023 Alvin Abraham 07/12/2023

Small Domestic Deposit Takers (SDDT) PS15/23

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.

Alvin Abraham 17/11/2023 Alvin Abraham 17/11/2023

Risk Management – Deposits via Deposit Aggregators

This article outlines the primary risks to banks linked to the utilisation of Deposit Aggregators (DAs) and proposes mitigating measures as outlined in the Dear CFO letter issued by the Prudential Regulation Authority (PRA) on November 15, 2023 and the Dear CEO letter in April 2021.

Alvin Abraham 13/11/2023 Alvin Abraham 13/11/2023

PS14/23 – The non-performing exposures capital deduction

PS14/23 - ‘The non-performing exposures capital deduction’ eliminates the Common Equity Tier 1 (CET1) deduction requirement for non-performing exposures (NPEs) that are treated as insufficiently covered by firms’ accounting provisions.

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 08/08/2022 Alvin Abraham 08/08/2022

UK Pillar 3 disclosure requirements - updated framework

The Pillar 3 disclosure requirements are now more proportional based on the risk and size of the bank. There is now a requirement to complete a number of prescribed templates as part of the disclosure as well. These changes comes into effect from 1 January 2022.

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

CP5/22 - Simpler-regime Firm (SRF)