Basel 3.1 final policy published

In this webinar, we covered 5 key areas. This was informed by previous discussions with clients and the regulatory authorities. It was also informed by our experienced prudential risk team, a number of whom have regulatory experience. This includes individuals who directly worked on setting the capital requirements for non-systemic banks.

• The PRA has made substantial changes to its SME proposals. Removal of the SME support factor will still take place. However, the PRA are also introducing a P2A firm-specific adjustment. As a result, any forecast uplift in capital requirements for lending to SMEs is being neutralised
• The proposals relating to residential mortgage classification represent a compromise from the PRA.
• The PRA confirmed that the thresholds for IRB models approval has been relaxed.