Asset Management | Digital Transformation | General | Legal Documents | Regulatory
Written by Theresa Jung
Jan 17, 2025
The Prudential Regulation Authority (PRA) has announced a one-year delay in the UK implementation of Basel 3.1, moving the date to 1 January 2027. This decision, made in consultation with HM Treasury, reflects ongoing uncertainty about the United States’ timeline for adopting the reforms. Basel 3.1, a response to the 2008 financial crisis, seeks to improve banks’ risk measurement and standardize capital ratios across institutions. Despite the delay, the PRA remains committed to full implementation by 2030 and will adjust transitional periods accordingly.
Basel 3.1, reflected in the CRR3 framework, introduces significant changes to the calculation of capital requirements for all risk types, aiming to reduce variability and improve consistency across banks. Key reforms include the introduction of a 72.5% capital floor for IRB models, stricter limits on Advanced-IRB usage, and a more detailed standardized approach for credit and operational risk. The framework also recalibrates the leverage ratio, introduces a buffer for global systemically important banks (G-SIBs), and replaces advanced operational risk measurement approaches with a single standardized method to ensure industry-wide consistency. LPA is your prime RegTech supplier, providing innovative solutions for financial institutions and asset managers to meet complex regulatory requirements efficiently.
Written by Simon Blechinger
17 Feb, 2025
Written by Simon Blechinger
17 Feb, 2025
Written by Simon Blechinger
5 Feb, 2025
Written by Sebastian Höft
24 Jan, 2025
Written by Sebastian Höft
24 Jan, 2025
Written by Julie Bradini
24 Jan, 2025