Gear Up for Basel 3.1 Implementation
The Prudential Regulation Authority (PRA) proposed rules and expectations for Basel 3.1 implementation in the UK (CP16/22) focuses on changes to risk-weighted asset (RWA) calculations as well as the PRA's "strong and simple" regime for smaller, less complex organizations.
Firms impacted by the proposals will encounter significant changes which bring its own complexity and challenges. The Basel practices will not only have to fit within existing supervisory architecture, which varies across regions, but also could impact institutions differently based on size, location, and entity.
What's changing and why?
To help you successfully meet the Basel 3.1 standards set out by the PRA, Wolters Kluwer UK Product Lead for Regulatory Reporting, Yogesh Patil examines the 6 key risk and regulatory categories impacted by the guidance including:
- Revised Standardized Approach (SA) for credit risk
- Revisions to the internal ratings based (IRB) approach for credit risk
- A revised approach to market risk
- Removal of the use of internal models for calculating operational risk capital requirements
- Removal of the use of internal models for credit valuation adjustment (CVA) risk
- Introduction of an aggregate “output floor”
- Regulatory Reporting Impact
Download now to learn more about Basel 3.1 and best practice guide to implementation.