Basel 3.1 loading

The Prudential Regulation Authority (PRA) has, in its supervisory priorities for 2026, set out expectations for international banks and designated investment firms in the United Kingdom (UK). The watchdog re-emphasised safety and soundness while increasing resilience, so that firms stay on the path of sustainable growth.

The PRA has underscored priorities across strategic risk management and controls, with particular focus on counterparty credit risk (CCR), especially exposures to non-bank financial institutions (NBFIs), enhanced risk monitoring (including intra-day dynamics), remediation against its model risk management expectations, and careful adoption of new technologies under robust governance and operational resilience standards.

It reiterated the need to align traded risk management and broader risk frameworks with expectations around the implementation of Basel 3.1, driving more consistent measurement and capital outcomes, supported by strong governance, well-controlled model use, and high-quality data for risk decisions and regulatory reporting. It further signals a more streamlined supervisory approach, including moving Periodic Summary Meetings of more firms to a two year cycle.

We interpret these priorities through a traded risk and market intermediation lens connecting supervisory expectations on CCR, NBFI connectivity, intraday exposure growth and data governance to front to back trading controls and measurable risk outcomes.

We bring risk optimisation and artificial intelligence (AI) / data science-enabled analytics to help firms build a “complete picture” across prime/clearing/financing, understand stress and margin dynamics in fast markets, and operationalise intraday risk appetite, limits and escalation while strengthening resilience across critical trading services (market data, execution, risk engines and collateral workflows).