Preparing for Basel 3.1 Go-Live: Non-IRB Firms

Workshop overview:

From 1 January 2027, Basel 3.1 and the Simplified Capital Regime for Small Domestic Deposit Takers (SDDTs) will reshape how UK banks calculate and report their capital position. This is not simply a reporting change. The numbers produced will define lending capacity, pricing, growth strategy and supervisory credibility. Boards and regulators will expect confidence before go-live, not explanations after issues surface in the first reporting cycle.

The Prudential Regulation Authority's thematic work has repeatedly found the same pattern across the industry – firms apply considerably less rigour to their regulatory returns than to the audit of their annual accounts. Weak governance from senior management functions is frequently the root cause of material reporting errors, which in turn can trigger intrusive and costly skilled person reviews. The regulator, by contrast, takes a far more constructive view of firms that identify and remediate issues on their own initiative.

This workshop covers the three questions every board should be asking now. First, can we trust the numbers –  are the data, calculations, controls and reporting outputs complete, accurate and reconcilable? Second, can we explain the numbers –  are assumptions, interpretations, judgements and RWA movements documented, defensible, independently challenged and consistently applied? Third, are we proportionate –  are we avoiding both under-compliance and the kind of unnecessary conservatism that quietly constrains capital efficiency and growth? 

Learning outcomes:

By the end of the course, participants will be able to:

• assess implementation readiness: understand where firms should be in their Basel 3.1 journey and identify the priorities for the final quarter before implementation
• challenge the numbers with confidence: develop practical techniques to assess data integrity, identify key risks and apply proportionate controls
• explain the numbers clearly: recognise common blind spots and strengthen the ability to trace, interpret and articulate the drivers behind reported outcomes
• apply proportionality in practice: build judgement around what is “enough” governance, analysis and documentation – and communicate that rationale effectively to internal and external stakeholders.