21 December 2021: On Tuesday 21 December, in accordance with regulation 26(4) of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014/894 (as amended), we disclosed the 2021 list of UK headquartered Global Systemically Important Institutions (G-SIIs). We also disclosed their respective sub-categories, applicable scores and G-SII buffers.
The 2021 UK G-SIIs and their sub-category allocations are as follows:
G-SII
|
Sub-category
|
Score
|
G-SII buffer rate
|
HSBC Holdings Plc |
3 |
369 |
2% |
Barclays Plc |
2 |
250 |
1.5% |
Standard Chartered Plc |
1 |
130 |
1% |
These buffers will apply from Sunday 1 January 2023. The list of G-SIIs and their sub-category allocations will be updated annually.
15 December 2021: We published PS27/21 ‘Designating investment firms’, relevant to all PRA-designated UK investment firms. The policy presented in this PS will take effect on Saturday 1 January 2022.
30 November 2021: We published our 2021 list of UK firms designated as other systemically important institutions (O-SIIs), as required under Part 5 of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014 (SI 2014/894). We are required to identify O-SIIs on an annual basis.
15 November 2021: We published PS26/21 ‘Domestic Liquidity Sub-Groups’, relevant to PRA-authorised UK banks, PRA-designated UK investment firms, and building societies. It is also relevant to UK financial or mixed financial holding companies that are immediate parent undertakings of firms that may be included in a DoLSub. The implementation date for the policy changes resulting from this PS will be Saturday 1 January 2022.
21 October 2021: We published PS24/21 ‘Implementation of Basel standards: Non-performing loan securitisations’ relevant to UK banks, building societies, and PRA-designated investment firms (collectively, ‘firms’), as well as UK financial holding companies (FHCs) and UK mixed financial holding companies (MFHCs) of certain PRA-authorised firms. The expectation is that the updated SS10/18, and the rules for calculating capital requirements on exposures to NPE securitisations, will take effect from Saturday 1 January 2022.
14 October 2021: We published PS22/21 ‘Implementation of Basel standards’. This PS is relevant to UK banks, building societies, and PRA-designated investment firms (collectively ‘firms’), as well as UK financial holding companies (FHCs) and UK mixed financial holding companies (MFHCs) of certain PRA-authorised firms.
8 October 2021: We published PS21/21 ‘The UK leverage ratio framework’, relevant to all Capital Requirements Regulation (CRR) firms and CRR consolidation entities on an individual, consolidated, and where relevant, sub-consolidated basis. There are differing implementation dates, so please refer to the PS for more information.
28 September 2021: We published CP19/21 ‘Domestic Liquidity Sub-Groups’, relevant to PRA-authorised UK banks, PRA-designated UK investment firms, and building societies. This consultation closes on Tuesday 12 October 2021.
15 September 2021: We published PS20/21 ‘Financial holding companies: Further implementation’. This PS is relevant to financial holding companies, mixed financial holding companies, PRA-authorised banks, and PRA-designated investment firms (hereafter ‘firms’) that are part of a UK consolidation group, controlled by a UK parent financial holding company, or UK parent mixed financial holding company. The policy presented in this PS comes into force on Wednesday 15 September 2021.
26 July 2021: We published PS19/21 ‘International banks: The Prudential Regulation Authority’s approach to branch authorisation and subsidiary supervision’, relevant to all existing or prospective PRA-authorised banks and designated investment firms that are headquartered outside the UK or are part of a group based outside of the UK. The expectations in SS5/21 take effect, and supersede SS1/18, on Monday 26 July 2021.
21 July 2021: We published PS18/21 ‘Remuneration: Correction to the definition of ‘higher paid material risk taker’, relevant to PRA-authorised banks, building societies, and PRA-designated investment firms. All changes outlined in this PS will take effect from Friday 23 July 2021.
9 July 2021: We published PS17/21 ‘Implementation of Basel standards’. This PS is relevant to UK banks, building societies, and PRA-designated investment firms (collectively ‘firms’), as well as UK financial holding companies (FHCs) and UK mixed financial holding companies (MFHCs) of certain PRA-authorised firms. The policy material being updated in this PS is published as near-final.
6 July 2021: We published PS16/21 ‘Internal Rating Based UK mortgage risk weights: Managing deficiencies in model risk capture’, relevant to PRA-authorised UK banks, building societies, and ring-fenced banks (RFBs) holding IRB model permissions. The amendments to SS11/13 will take effect from Saturday 1 January 2022, and the revised PD and LGD parameter minimum values will be consulted on as part of the PRA’s implementation of the Basel 3.1 standards.
5 July 2021: We published CP15/21 ‘Designating investment firms’, relevant to all PRA-designated UK investment firms. This consultation closes on Tuesday 5 October 2021.
21 June 2021: We published CP12/21 ‘Financial holding companies: Further implementation’, relevant to financial holding companies, mixed financial holding companies, and banks and PRA-designated investment firms (firms) that are part of a UK consolidation group controlled by a UK parent financial holding company or UK parent mixed financial holding company. This consultation closes on Thursday 22 July 2021.
3 June 2021: We published CP10/21 ‘Implementation of Basel standards: Non-performing loan securitisations’, relevant to all PRA-authorised firms to which the Capital Requirements Directive (CRD) applies. This consultation closes on Monday 26 July 2021.
26 April 2021: We published CP9/21 ‘Remuneration: Correction to the definition of ‘higher paid material risk taker’. This CP is relevant to UK banks, building societies and PRA-designated UK investment firms. This consultation closes on Wednesday 26 May 2021.
4 March 2021: As described in PS26/20 (Capital Requirements Directive V (CRD V)), the PRA has exercised its own initiative powers under s55M(3) and s55Y(4) FSMA to implement the changes to (i) the Capital Buffers and Pillar 2A Model Requirement and (ii) the Additional Leverage Ratio Buffer Model Requirements, as well as, for those firms subject to it, to replace references to the Systemic Risk Buffer with references to the O-SII Buffer. All firms have received Own Initiative Requirement notices from December 2020 to that effect. The text of the current Capital Buffers and Pillar 2A Model Voluntary Requirement (VREQ) and Additional Leverage Ratio Buffer Model Requirements is available on the Bank of England website.
25 February 2021: We published ‘PRA statement on the definition of ‘higher paid material risk taker’, which addresses an error identified by the PRA in the Remuneration Part of the PRA Rulebook.
12 February 2021: We published CP5/21 ‘Implementation of Basel standards’. This CP is relevant to banks, building societies, PRA-designated investment firms, and PRA-approved or -designated financial or mixed financial holding companies (firms). This consultation closes on Monday 3 May 2021.
11 January 2021: We published CP2/21 ‘International banks: The PRA’s approach to branch and subsidiary supervision’. This CP is relevant to existing or prospective PRA-authorised banks and designated investment firms that are headquartered outside of the UK or are part of a group based outside of the UK. This consultation closes on Sunday 11 April 2021.