Understanding Basel 3.1
On 1 July 2025, the Prudential Regulation Authority (PRA) is implementing the biggest changes to the capital regime for banks in over a decade. This reform package is commonly known as Basel 3.1.
Expectations ahead of final Basel 3.1 rules
Join our Banking Risk Consulting team as they reflect on the published near-final rules covered in PS17/23, as well as their expectations for credit risk and output floor requirements ahead of incoming policy.
Register for our upcoming webinar
Webinar details
- Date: Thursday 2 May 2024
- Time: 09:30
- Duration: 30 minutes
Agenda
- Key credit risk proposals under the standardised and IRB approaches
- Implications of the introduction of the output floor
- Near-final rules published December 2023
- Q&A session
Meet our experts
- Huseyin Sahin, Partner, Banking Risk Consulting
- Nicolas Cerrajero, Partner, Quantitative Solutions
- Anindya Ghosh Chowdhury, Director, Banking Risk Consulting
- Freddie Blake, Associate Director, Banking Risk Consulting
Basel 3.1 series
This webinar series will provide insight and analysis of the PRA’s implementation of Basel 3.1. The rest of the series will take place following the release of the outstanding final policy rules on Basel 3.1 by the PRA. This is expected to occur in the next two months.
Basel 3.1 – Near-final rules part 1
Policy statement 17/23 (PS17/23) contains Basel 3.1 near-final policy materials for market risk, credit valuation adjustment (CVA) risk, counterparty credit risk and operational risk.
Basel 3.1 – Understand the regulation
In this series of short articles, our Prudential Regulation Consulting team delves into the implications of Basel 3.1 changes on banks.
Basel 3.1 video series
Basel 3.1 is the final set of amendments to the capital regime for banks after the Global Financial Crisis. The Prudential Regulation Authority (PRA) proposed that the implementation date for the changes would be 1 July 2025. In this series, we take a closer look at what firms need to consider before these reforms will be live in the UK.
UK vs EU Basel comparison
Both the UK and the EU are consulting on the next wave of iterations to the Basel reforms. Whilst the focus of these consultations has been relatively broad, the rules around the computation of Pillar 1 Credit Risk RWAs seen the most significant change. This article outlines some of the main differences between the UK and EU approaches on this topic, along with our thoughts on these divergences.
Banking - Q4 2022
There were several regulatory developments in Q4 2022, including the launch of the consultation paper on Basel 3.1. This was followed by the publication of the 2023 priorities letter from the PRA in January 2023. In this update, we have discussed the key regulatory developments from Q4 2022, and also discussed the PRA priorities letter from Q1 2023.