1 Overview

1.1 This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 6/19 ‘Pillar 2 liquidity: Updates to the framework’. It also contains the PRA’s final policy, as follows:

• updates to the Regulatory Reporting Part of the PRA Rulebook (Appendix 1); 

• updates to Statement of Policy (SoP) ‘Pillar 2 liquidity’ (Appendix 2);

• updates to Supervisory Statement (SS) 24/15 ‘The PRA’s approach to supervising liquidity and funding risks’ (Appendix 3);

• updates to SS34/15 ‘Guidelines for completing regulatory reports’ (Appendix 4); and

• updates to PRA110 template and reporting instructions (appendices 5 and 6).

1.2 This PS is relevant to UK banks, building societies, PRA-designated investment firms, and non-EU EEA banks, referred to collectively as ‘firms’ in this PS.

Background

1.3 In CP6/19 the PRA proposed regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework, including: