This Consultation Paper (CP) covers the parts of the Basel III standards that remain to be implemented in the UK. The PRA refers to them as the ‘Basel 3.1 standards’. The proposals address mainly the last element of the reforms – the measurement of RWAs (the denominator of capital ratios). The proposals would, among other things, revise the calculation of RWAs by improving both the measurement of risk in internal models (IMs) and standardised approaches (SAs), and the comparability of risk measurement across firms.
The full paper is available at https://www.bankofengland.co.uk/prudential-regulation/publication/2022/november/implementation-of-the-basel-3-1-standards