Regnology Nexus Briefing | June 2026

03 June 2026: The Bank of England is mandating an upgrade to its statistical reporting system, transitioning to Taxonomy v1.3.1 starting late May 2026. This technical update ensures standardization but requires firms to update their internal systems and consult software providers for compatibility. Consequently, any reports generated using the older taxonomy will be rejected going forward. Additionally, firms relying on the soon-to-be-retired Statistical Utility tool must secure alternative solutions for their data submissions

29 May 2026: The Financial Conduct Authority (FCA) released a policy statement detailing new data reporting requirements for retail banking business models. The policy (PS26/8) will require larger personal current account providers to submit more detailed information, enabling the FCA to better supervise the market, monitor competition, and assess the impact of business model changes on consumers. The data will enhance the regulator's ability to act pre-emptively to address potential harms.

28 May 2026: The BoE Prudential Regulation Authority (PRA) published a policy statement PS15/26 finalizing the first phase of its review of the Pillar 2A capital framework. The review aims to modernize the PRA's approach, improve transparency, and address the impacts of the upcoming Basel 3.1 standards on firm-specific risks not covered by Pillar 1. The implementation date for all policy changes in this statement has been harmonized to 1 January 2027.

27 May 2026: The PRA issued a policy statement PS14/26 confirming the restatement of retained EU law definitions from the UK Capital Requirements Regulation (CRR) into the PRA Rulebook. This administrative exercise is part of the PRA’s broader effort to create a more streamlined and accessible UK prudential rulebook following Brexit. The restatement ensures continuity and clarity for firms by consolidating key definitions directly within the PRA’s regulatory framework without making substantive policy changes.

15 May 2026: The PRA, FCA, and HM Treasury issued a joint statement on the use of Frontier AI models and their implications for cyber resilience in the financial sector. The statement acknowledges the transformative potential of AI while highlighting the associated operational risks, including new and amplified cyber threats. The regulators expect firms to manage these risks robustly within their existing operational resilience frameworks and will continue to monitor developments closely.

04 June 2026: The Australian Prudential Regulation Authority (APRA) finalized a more accessible, flexible, and transparent pathway for medium-sized banks to achieve internal ratings-based (IRB) accreditation. This initiative aims to enhance competition and improve risk management by allowing banks to better align capital with actual risks. You can read the full, official letter at APRA's website together with the final revised Prudential Standard APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk (APS 113) and Prudential Practice Guide APG 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk (APG 113).

02 June 2026: APRA issued a letter finalizing an FAQ on the liquidity treatment of deposits held with settlement service providers (SSPs). The guidance clarifies for ADIs subject to the Minimum Liquidity Holdings (MLH) requirement that deposits held to secure settlement obligations are considered encumbered and must not be included as MLH liquid assets. APRA acknowledged that its historical communication had led to inconsistent industry practices and has extended the transition timeline to 31 December 2026 to assist affected entities. The new treatment must be applied starting with the December 2026 quarterly liquidity reports.

01 June 2026: The Hong Kong Monetary Authority (HKMA) issued a letter to all Authorized Institutions marking the successful conclusion of the operational resilience implementation journey set out in its Supervisory Policy Manual (SPM OR-2). Having confirmed that all institutions achieved resilience by the May 2026 deadline, the HKMA now expects firms to sustain and uplift their frameworks as a "business as usual" activity. The letter outlines core building blocks for this next phase, including strong leadership, continual review of critical operations and tolerances, refining mapping and scenario testing, and proactively managing new and emerging risks such as those related to AI.

29 May 2026: The Monetary Authority of Singapore (MAS) published two information papers detailing good practices in risk management and valuation for fund management companies. The papers are based on thematic inspections and aim to enhance industry standards. The risk management paper focuses on liquidity risk, governance, and derivatives risk, while the valuation paper emphasizes the need for robust governance frameworks, independent valuation processes, and fair valuation policies.

29 May 2026: HKMA share good industry practices that the Hong Kong Monetary Authority (HKMA) observed from its thematic reviews of authorized institutions (AIs) regarding their market risk capital charge (MRCC) calculation and related risk management for implementing the Basel III final reform package (B3F). The reviews focused on how the AIs identified and measured residual risk add-on (RRAO) and standardized default risk charge (SA-DRC), and the associated controls to ascertain the completeness and accuracy of their MRCC calculation under the revised standards.

28 May 2026: MAS has revised the liquidity framework for both banks (Notice 649) and merchant banks (Notice 1015), effective 1 September 2026, updating the treatment of liquid assets, cash-flow assumptions, and LCR/MLA requirements. The accompanying amendments and revised Form 2 align reporting with the updated liquidity calculations and classifications. Financial institutions will need to reassess liquidity eligibility rules, calculation methodologies, and regulatory reporting processes to ensure compliance with the revised framework.

27 May 2026: APRA formalized a new three-tiered approach to proportionality for its banking prudential framework. This change categorizes authorised deposit-taking institutions (ADIs) into Significant Financial Institutions (SFIs), Core Prudential Requirements (CPR) ADIs, and a baseline group for small, less complex ADIs. The new model aims to reduce the regulatory burden on smaller institutions by better aligning prudential requirements with their size and complexity, while ensuring the largest banks remain subject to the full framework. The changes take effect from 1 July 2026.

26 May 2026: APRA announced that it is expediting the migration of data collection to APRA Connect portal due to decommissioning of its Direct to APRA (D2A) data submission system. The D2A system has been shut down since March’26, significantly earlier than the original end-of-2027 timeline. Consequently, all the reporting entities need to plan for submissions in line with APRA’s plan starting with the period ending 30 June 2026.

22 May 2026: MAS has refined the Large Exposure Framework by narrowing the scope of exemptions for exposures to related corporations. Going forward, exposures to holding companies and affiliated bank/merchant bank entities will only be exempt from large exposure limits if the holding company is subject to consolidated prudential supervision by a banking regulator. The changes aim to better manage contagion and concentration risks arising from entities outside a prudentially supervised banking group and take effect from 1 July 2026.

21 May 2026: The Bangko Sentral ng Pilipinas (BSP) approved a reform to enable banks to maintain a Positive Neutral Countercyclical Capital Buffer (PN-CCyB). This measure allows banks to build up a releasable capital buffer during periods of strong credit growth, which can then be drawn down in times of stress to sustain lending to households and businesses. The reform reallocates 1.5 percent of banks' existing Common Equity Tier 1 (CET1) capital into the buffer, without increasing the overall capital requirement. The rule will be phased in over one year for universal and commercial banks and over two years for digital banks.

19 May 2026: The Seventh Amendment proposes a comprehensive revision of the Basel Pillar 3 disclosure framework, aligning RBI disclosures more closely with international Basel standards. It introduces new and revised disclosure templates covering capital, leverage, liquidity, credit risk, market risk, operational risk, and risk-weighted assets, while strengthening governance, attestation, and disclosure control requirements. The objective is to improve transparency, comparability, and market discipline through more granular and standardized public disclosures.

19 May 2026: The amendment allows banks to include current-year profits in their Capital to Risk-Weighted Assets Ratio (CRAR) calculation on a quarterly basis, provided the quarterly financial statements are audited or subject to a limited review. Eligible profits must be adjusted using a prescribed formula that deducts a prudential amount for expected dividends. Additionally, any cumulative net loss during the financial year must be fully deducted from CET1 capital. The directions came into effect immediately.

13 May 2026: APRA released for consultation a new draft licensing framework for locally incorporated Authorised Deposit-taking Institutions (ADIs). This follows a 2025 discussion paper and implements a recommendation from the Council of Financial Regulators to make the application process more transparent and efficient. APRA intends to finalize the changes later this year and is accepting written submissions until 31 July 2026.