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Prudential Regulation

AFME's Prudential Regulation division focuses on the issues relating to changes to the global, EU and UK prudential regulatory frameworks.

Overview

Working proactively and reactively on regulatory, legislative and policy initiatives, the division provides members with a forum to discuss prudential issues and concerns, with the aim of:

  • seeking appropriate, measured and globally consistent regulatory outcomes;
  • seeking quality policy developments;
  • enhancing and maintaining AFME's status as a trusted interlocutor;
  • fostering a regulatory dialogue with the industry; and
  • contributing industry expertise to informed debates about regulation.
The division is advised by the Prudential Regulation Board, which sets its broad policy focus and objectives, and the Prudential Regulation Committee, which scrutinises proposed regulations and advises on technical matters. These bodies are supported by a wide range of technical working groups.

CRR3

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AFME is working closely with EU regulators as they seek to implement the final revisions to Basel III in the EU. We are supporting our Members in responding to the relevant consultations in the lead up to the Commission’s CRR3 proposals expected in June 2020. AFME’s positions on the various elements of the Basel III package from December 2017 can be found below as part of the break down to the Commission’s recent consultation. (CRR3). 

View CRR3 page.

CRD V / CRR II

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AFME is currently closely engaged with the EU’s trialogue process to agree CRDV/CRR II.


The new CRD V/CRR II proposals introduce the Net Stable Funding Ratio (NSFR) and the Leverage Ratio as binding requirements for EU banks. The package also includes the implementation of Total Loss Absorbing Capacity (TLAC) for EU G-SIBs, as well as a number of other Basel standards - including a new framework for market risk capital requirements.

AFME has positions on the various elements of the CRDV/CRRII package.

RRM

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Read AFME’s paper: AFME views on priority areas in the trilogue negotiations on the Risk Reduction Measures Package (RRM)

In this paper, AFME provides views on the ongoing negotiations and makes recommendations aimed at achieving financial stability, supporting the EU growth agenda and CMU, and removing fragmentation within Banking Union.

Basel III

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(December 7 2017 agreement)

AFME is working with international and EU regulators on the future implementation of the Basel III agreement in 2017.

Basel 3.1 (UK)

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AFME has engaged with the PRA and HMT in relation to the UK’s implementation of Basel III. The UK authorities refer to the anticipated transposition of these international standards in the UK as Basel 3.1

AFME has developed a series of papers relating to various elements of the anticipated Basel 3.1 package.

Recovery and Resolution

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AFME has been, and continues to be, extensively engaged in the development of the Recovery and Resolution framework, the Single Resolution Mechanism and efforts to strengthen deposit insurance.

NPLs

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AFME is closely following the Council Action plan to tackle NPLs in Europe.

Read AFME’s study: Impact of Regulation on Banks’ Capital Markets Activities: An ex-post assessment, which was produced in collaboration with PwC.

CRR3

On December 7 2017 the Basel Committee agreed the outstanding Basel III post-crisis regulatory reforms. These will be implemented in the EU as part of CRR3.
View page

Contacts

Caroline Liesegang

Managing Director, Head of Prudential Regulation, Sustainable Finance and Research

+44 (0)20 3828 2676

Constance Usherwood

Managing Director, Prudential

+44 (0)20 3828 2719

Jouni Aaltonen

Managing Director

+44 (0)20 3828 2671

Mark Bearman

Director, Prudential Regulation

+44 (0)20 3828 2675

Oliver Moullin

Managing Director, Sustainable Finance, General Counsel and Company Secretary

+44 (0)20 3828 2712

Sahir Akbar

Managing Director, Deputy Head of Prudential Regulation

+44 (0)20 3828 2732