PCS files its response to the UK PRA's consultation on CRR

14/01/2025

PCS has filed its response to the United Kingdom's Prudential Regulation Authority consultation on proposed changes to the CRR, including a number of securitisation rules. The proposals are overall going in a positive direction but will fall short, in PCS' opinion, of what is needed both to correct the distortions introduced in UK markets by miscalibrated regulations and to allow UK banks to compete with their international peers on a level playing field.

In addition to responding on the precise proposals, PCS's document starts with three point of general application which are of concern: the limits of Basel conformity, evidence based calibration and the issue of STS for synthetics. On the first, we query the principles on which the PRA assesses the extent to which it is willing to depart from the current Basel rules and the political rather than prudential nature of many of those decisions. On evidence based calibrations, PCS reiterates the plea made in our response to the European Commission to calibrate STS capital requirements on the available pre-GFC and GFC data on traditional European securitisations. On STS for synthetics, we seek to demonstrate why the non-neutrality rules that are applied to non-STS traditional securitisations were never relevant to senior tranches of synthetic transactions.

PCS files its response to the UK PRA's consultation on CRR
Copyright © PCS 2025
 | 
DisclaimerPrivacy Policy

Created by Proformat