News & Analysis as of

Prudential Regulation Authority (PRA) Stress Tests

A&O Shearman

ESAs launch joint consultation on draft guidelines for ESG stress testing

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The European Supervisory Authorities (the European Banking Authority, European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority) have launched a joint consultation on their joint...more

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Key elements of the 2025 CCP Stress Test

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The Bank of England (BoE) has published key elements to its 2025 Stress Test of UK Central Counterparties (CCPs), along with a spreadsheet containing the relevant market stress scenarios. This exercise, the fourth of its...more

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BoE publishes two new stress test scenarios for 2025 Bank Capital Stress Test

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The Bank of England (BoE) has updated its stress testing webpage, announcing it has published two stress test scenarios for use by banks and building societies that are not participants in its concurrent stress testing...more

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EBA peer review report on the performance of stress tests by deposit guarantee schemes

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The European Banking Authority (EBA) has published a report on the findings of a peer review of the performance of stress tests by deposit guarantee schemes (DGS). The aim of the peer review was to assess the performance of...more

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Bank of England 2025 bank capital stress test launched

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The Bank of England (BoE) has launched the 2025 bank capital stress test for the seven largest and most systemic UK banks and building societies. The exercise is the successor to the Annual Cyclical Scenario. The test...more

Hogan Lovells

UK: The PRA sets out its supervisory priorities for insurers in 2025

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On 9 January 2025, the Prudential Regulation Authority (PRA) published its annual Dear CEO Letter setting out its priorities for the supervision of (re)insurers in 2025.    Similar to last year, financial and operational...more

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Bank of England Amends Approach to Stress Testing UK Banking System

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The Bank of England has updated its approach to stress testing the U.K. banking system. From 2025 onwards, the BoE will move from an annual to a biennial frequency for its main bank capital stress test...more

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Bank of England System-Wide Exploratory Scenario Exercise and 2024 Central Counterparty Supervisory Stress Test

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The Bank of England has published the final report on its system-wide exploratory scenario. The SWES was a 'system-wide' exercise, incorporating a wide range of financial firms and business models, focusing not on the...more

Hogan Lovells

Banking and finance regulatory news, April 2021 # 4

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BoE stress testing: 2021 Climate Biennial Exploratory Scenario update - Reports on key recent regulatory developments focussing on banking and finance. See also our Financial institutions general regulatory news and other...more

Hogan Lovells

Banking and finance regulatory news, March 2021 # 5

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Depositor protection identity verification: PRA PS4/21 - Following its consultation in CP3/21, the UK Prudential Regulation Authority (PRA) has published a policy statement, PS4/21, on depositor protection identity...more

Hogan Lovells

Banking and finance regulatory news, February 2021 # 4

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BoE banking solvency stress test 2021 scenario - The Bank of England (BoE) has updated its stress testing webpage and published the solvency stress test 2021 scenario for banks and building societies that are not part of...more

Hogan Lovells

Banking and finance regulatory news, January 2021 # 2

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Depositor protection identity verification: PRA CP3/21 - The UK Prudential Regulation Authority (PRA) has published a consultation paper, CP3/21, on depositor protection identity verification....more

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Bank of England Consults on Proposed 2021 Climate Change Stress Tests

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The Bank of England has published a discussion paper seeking feedback on its proposals for a series of 2021 stress-tests on climate-related risks for the largest banks, insurers and the financial system. The stress tests will...more

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UK Prudential Regulator Provides Hurdle Rate Change Information for 2018 Stress Test

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The U.K. Prudential Regulation Authority has published a statement on Systemic Risk Buffers and Pillar 2A in stress test hurdle rates. The Bank of England announced in its March 2018 Key Elements of the 2018 Stress Test that...more

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UK Prudential Regulation Authority Finalizes Model Risk Management Principles for Stress Testing

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The U.K. Prudential Regulation Authority has published a Policy Statement and a finalized Supervisory Statement following a consultation which ran from December 2017 to March 2018 on model risk management principles for...more

Katten Muchin Rosenman LLP

Corporate & Financial Weekly Digest, Featuring Topics on Broker/Dealer and UK/EU Developments

BROKER-DEALER - Nasdaq Has Proposed a New Rule Change To Modify Its System of Volume-Based Credits - The Nasdaq Stock Market LLC (Nasdaq) has filed with the Securities and Exchange Commission a proposed rule change to...more

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UK Prudential Regulation Authority Consults on Principles for Assessing Stress Test Model Risk Management Practices

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The Prudential Regulation Authority has launched a consultation on model risk management principles for stress testing. The PRA is proposing a set of four principles which are intended to assist firms in developing and...more

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US Federal Bank Regulators Issue Revised Economic Scenarios for 2017 Stress Testing

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The US Federal Reserve Board, the US Office of the Comptroller of the Currency and the US Federal Deposit Insurance Corporation each released revised economic scenarios for use by certain financial institutions with total...more

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UK Prudential Regulation Authority Consults on Pillar 2 Liquidity Risk Requirements

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The Prudential Regulation Authority published a consultation paper on its proposed approach to Pillar 2 liquidity requirements for intraday risk, debt buyback and non-margined derivatives, including a proposed policy...more

Cooley LLP

Blog: PRA Explains Its Supervisory Priorities For General Insurers In 2016 / 7

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The PRA has published a letter from Chris Moulder, its general insurance director, to the CEOs of the 26 general insurers and Lloyd’s syndicates that participated in its 2015 General Insurance Stress Testing exercise. The...more

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