Events listed in [PRA] Prudential Regulation Authority
An anatomy of the 2022 gilt market crisis
ID 22602
The Prudential Regulation Authority, PRA, has published a new working paper in which it presents the findings from an analysis of the causes and consequences of the yield hikes in UK gilts in September and October 2022. The paper thereby looks at „market liquidity, investor behaviour and price dynamics“ and lays down how the initial yield hike was triggered and the consequences such hikes ...
Statistical Notice 2023/02
ID 22557
In view of the national bank holiday in May 2023 due to the coronation of King Charles III, the Bank of England (BoE) has published a Statistical Notice (2023/02) in connection with the statistical data that must be reported to the regulator. According to the statement, the data submissions of relevant firms and institutions may be made a day later during the period from ...
Financial Policy Summary and Record – March 2023
ID 22554
The Bank of England (BoE) has published its Financial Policy Summary and Record (03/2023) which typically summarizes key market developments and vulnerabilities in the last business quarter (Q4/2022) as identified by the Financial Policy Committee (FCP). Due to recent developments in the banking sector, however, this quarterly report also addresses issues that arose in the past month. Some highlights of the document are noted ...
Bank staff paper: LDI minimum resilience – recommendation and explainer
ID 22540
The Bank of England has published a bank staff paper entitled LDI minimum resilience – recommendation and explainer which was drawn up by the Financial Policy Committee (FPC) of the Bank. The paper follows last year’s market turmoil involving UK guilts, the subsequent effects on Liability Driven Investment (LDI) portfolios, and the imposition of temporary measures by the HM Treasury to counteract the dive ...
Thematic findings from the 2022 cyber stress test
ID 22527
On March 29, 2023, the Prudential Regulation Authority, PRA, published an open letter primarily addressed at supervised firms and market infrastructures to present the „findings“ from the Bank of England’s 2022 cyber stress test (CST22). The stress test was voluntary, was performed as a desktop exercise and sought to explore – the ability of firms to quickly identify the nature of any operational disruptions ...
Transforming data collection communication to firms – 23 March 2023
ID 22473
The Bank of England (BoE) has published a press release to provide an update on the progress of the joint transformation programme, which is being led by the Bank of England and the Financial Conduct Authority (FCA) to transform data collection from the UK financial sector. The programme’s vision is that „the Bank of England and the FCA get the data they need to ...
Bank of England Statement: UK creditor hierarchy
ID 22383
In view of the recent resolution of the UK branch of the Silicon Valley Bank and the complete write-down of its Additional Tier 1 (AT1) and Tier 2 instruments (T2), the Prudential Regulation Authority, PRA, has published a press statement. Therein, the Authority clarifies the creditor hierarchy in case of bank resolutions which provides that AT1 instruments, e.g. contingent convertible bonds or CoCos, rank ...
Coordinated central bank action to enhance the provision of U.S. dollar liquidity
ID 22349
The Bank of England (BoE) has published a press release to inform that the Bank of Canada, the U.S. Federal Reserve, the Bank of Japan, the European Central Bank, the Swiss National Bank, and the BoE itself have initiated a coordinated effort to increase the supply of U.S. dollar liquidity through existing U.S. dollar swap arrangements. Specifically, to increase the effectiveness of the swap ...
CP6/23 – The non-performing exposures capital deduction
ID 22258
The Prudential Regulation Authority, PRA, has launched a new consultation (CP6/23) in which it proposes to significantly simplify the reporting of non-performing exposures (NPEs) by (1) removing the Common Equity Tier 1 (CET1) deduction requirement for NPEs that aren’t adequately accounted for. This requirement was introduced by the European Banking Authority in 2019 and requires for all newly generated loans that turn into non-performing ...
Statement on Silicon Valley Bank
ID 22249
The Prudential Regulation Authority, PRA, has published a press statement in view of the recent bank failure of the U.S. Silicon Valley Bank. In its statement, the PRA informs that – together with the Financial Conduct Authority (FCA) and the HM Treasury – it has decided to sell the UK subsidiary of the Silicon Valley Bank, the Silicon Valley Bank UK Limited (SVBUK), to ...