Home » Understanding Basel III, What Is Different After December 2014 by George Lekatis
Understanding Basel III, What Is Different After December 2014 George Lekatis

Understanding Basel III, What Is Different After December 2014

George Lekatis

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164 pages
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 About the Book 

December, there is a need for liquidity (not only for banks).Today we will start with some important parts from the Consultation Paper CP27/14 covering the changes to the Prudential Regulation Authority (PRA) rules and guidance, to accommodate theMoreDecember, there is a need for liquidity (not only for banks).Today we will start with some important parts from the Consultation Paper CP27/14 covering the changes to the Prudential Regulation Authority (PRA) rules and guidance, to accommodate the introduction of the European Union liquidity coverage requirement:The Bank of England and the PRA reserve the right to publish any information which it may receive as part of this consultation.Information provided in response to this consultation, including personal information, may be subject to publication or release to other parties or to disclosure, in accordance with access to information regimes under the Freedom of Information Act 2000 or the Data Protection Act 1998 or otherwise as required by law or in discharge of our statutory functions.Please indicate if you regard all, or some of, the information you provide as confidential.If the Bank of England or the PRA receives a request for disclosure of this information, the Bank of England or the PRA will take your indication(s) into account, but cannot give an assurance that confidentiality can be maintained in all circumstances.An automatic confidentiality disclaimer generated by your IT system on emails will not, of itself, be regarded as binding on the Bank of England and the PRA.Responses are requested by Friday 27 February 2015.1.1 On 10 October 2014, the European Commission published a delegated act to supplement EU Regulation (EU) No 575/2013 with regard to the liquidity coverage requirement for credit institutions (‘Delegated Act’).This legislation is due to enter into force by 31 December 2014.It will be directly applicable in the United Kingdom from 1 October 2015.1.2 In light of this, the Prudential Regulation Authority (PRA) must revoke existing rules where appropriate, and restate its overall approach to regulating liquidity.The PRA proposes to revoke the liquidity standards contained in Chapter 12 of the Prudential sourcebook for Banks, Building Societies and Investment Firms (BIPRU 12) at the point at which the Delegated Act applies as a regulatory standard in the European Union (EU).New rules are proposed to implement the PRA’s approach to liquidity supervision (Appendix 2).Consequential amendments will be made to the liquidity reporting requirements in Chapter 16 of the Supervision handbook (SUP 16), and to the PRA Fundamental Rules (Appendix 2).The PRA will consult on further consequential amendments to its rules that are necessary to implement its new liquidity regime.1.3 This consultation paper (CP) seeks views on draft rules and a draft supervisory statement (Appendix 1) which set out the PRA’s proposed update to its liquidity regime.This consultation is relevant to UK banks, building societies and UK-designated investment firms (‘firms’).It is also relevant to third country firms that are banks or designated investment firms, and European Economic Area (EEA) credit institutions that have a branch in the United Kingdom.