The UK PRA has published the final tranche of its “near final” proposals for Basel III finalisation (here), which includes various things of interest to the CRE financing market.
On a very preliminary review it seems a mixed bag, but with some significant improvements compared to the PRA’s November 2022 proposals (yes, it was that long ago), notably a big step back from the “prudent value” concept for valuing collateral that, by contrast, the EU is adopting.
We’re thinking of organising a webinar in a few weeks’ time, hopefully with PRA participation, to run through the key points emerging. It will take time though, because there’s a lot of material to work through, as well as lots of other stuff going on. If you have comments or questions (or indeed answers! We like those too!), please drop Peter a line. The FT’s summary (which also flags that the start date has been pushed back another six months to start 2026) can be accessed here.
Last week we also learned about likely concessions to Wall Street from the Fed in its Basel endgame implementation – members can access the associated alert from our US colleagues here for more.
