Regulatory Reporting & Disclosure

Regulatory Reporting & Disclosure

UK Finance supports its members who have signed up to its Disclosure Code on Financial reporting and Disclosure. This work includes supporting members and engaging with authorities including the FRC and PRA on implementation of International Financial Reporting Standard (’IFRS’) 9 ‘Financial Instruments’ and ensuring that regulatory reporting is accurate, timely and proportionate and allows users to make appropriately consistent  assessments of banks’ financial metrics.

Pillar 3 and Regulatory reporting are key external outputs of the UK Finance’s members and encompass capital, liquidity and financial reporting. UK Finance’s work on public disclosures, including Pillar 3, is also evolving to cover sustainability and climate risk disclosures, reporting and risk management practices.

For more information on the team’s work in Regulatory Reporting & Disclosure contact:

nala.worsfold@ukfinance.org.uk

Governance

UK Finance supports it members in their implementation of the Senior Managers and Certification regime of individual accountability.

We also engage with authorities about the development of legislative reforms to the UK ‘s audit, reporting  and corporate governance regime.

Basel 3.1 implementation

The Basel 3.1 framework was developed by the Basel Committee on Banking Supervision (BCBS)  in the wake of the 2007- 2009 Global Financial Crisis to strengthen the regulation, supervision and risk management of banks.

It will be implemented in the UK by 1 January 2025. UK Finance is working with member banks and the Prudential Regulation Authority to ensure that the international framework is introduced in the UK in a way that is proportionate, operationalisable and does not give rise to a material increase in capital requirements.

We support adherence to the BCBS international standards which is key to increasing the comparability of banks operating globally, but have noted a number of about the design of  Basel 3.1 concerns including:

  • Use of origination values for LTV calculation
  • Income-Producing Real Estate Exemptions
  • credit conversion factor applied to Committed and revolving facilities
  • SME and Infrastructure supporting factors
  • Lending to unrated corporates
  • Exposures to sovereigns, including Export Credit Agency guarantees
  • Level of application of the output floor
  • SME and Infrastructure supporting factors
  • CVA adjustment
  • Treatment of equity exposures
  • Methodology for adjusting Pillar 2 A add-ons downwards post-implemenation
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