Today, the Prudential Regulation Authority (PRA), in consultation with HM Treasury, announced a one-year delay to the implementation of Basel 3.1 in the UK. Originally scheduled to take effect on 1 January 2026 for banks not classified as Small Domestic Deposit Takers (SDDTs), the new implementation date is now set for 1 January 2027.

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 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). The first part of these near-final rules was issued on 2 December 2023, as part of PS17/23.

This article provides an overview of the near-final rules published by the PRA, as part of the UK's implementation of Basel 3.1 (PS9/24).

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.

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.

This article outlines the changes relating to credit risk corporate exposure classification and risk weights under the standardised approach, as part of UK’s implementation of Basel 3.1 (PS9/24).

This article outlines the changes relating to credit risk retail exposure classification and risk weights under the standardised approach, as part of UK’s implementation of Basel 3.1 (PS9/24).

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

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).

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

This article provides an overview of the near-final rules concerning exposures in default under the standardised credit risk approach, as part of the UK's implementation of Basel 3.1 (PS9/24).

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).

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.

This article outlines the key changes to the calculation of own funds requirement for operational risk, as part of the implementation of Basel 3.1 standards (PS17/23).

This article outlines the reporting changes, as part of UK’s implementation of Basel 3.1 (PS9/24).

This article outlines the key changes to the calculation of Credit valuation adjustment and counterparty credit risk, as part of the implementation of Basel 3.1 standards (PS17/23).

This article outlines the key changes to the calculation of market risk capital requirements as part of the implementation of Basel 3.1 standards (PS17/23).

In December 2023, the Basel Committee on Banking Supervision (BCBS) published a Consultative Document on the recalibration of shocks for the measurement of IRRBB. Following the consultation period, on 16 July 2024, the BCBS published the final Recalibration of Shocks in the Interest Rate Risk in the Banking Book Standard.

On 27th June 2024, the Prudential Regulation Authority (“PRA”) published the ICAAP Scenarios for non-systemic UK banks, which are the supply shock scenario and the demand shock scenario. This article summarises the key factors of the scenarios and provides specific points on how small- and medium-sized banks should approach there stress testing design processes, with relation to the 2024 ICAAP Scenarios.

On April 23, 2024, the Prudential Regulation Authority (PRA) published the outcomes of a thematic review of banks' risk management practices related to private equity (PE) financing activities. This article summarises the key areas of improvement and provides specific action points that small- and medium-sized banks may consider as part of their risk management practices.