Company: BCS
Filing Date: 2025-02-20
Form Type: 424B2
Source: 0001193125-25-030302
Chunk: 65

Company: BARCLAYS PLC
Filing Date: 2025-02-20
Form: 424B2
Chunk 65
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 the COVID-19 pandemic on the global banking system,
including the deferral by one year to January 1, 2023 of the implementation date of most of the proposed reforms listed above and the deferral by one year to January 1, 2028 of the implementation period for the accompanying transitional
arrangements for the output floor. In November 2022, the PRA published a consultation paper (CP16/22), setting out its proposed rules for the implementation of the BCBS package and His Majesty’s Treasury (“HM Treasury”) published a
consultation with the proposed secondary legislation to facilitate the implementation of such PRA rules. Following feedback to responses, the PRA published a near-final policy statement (PS17/23) on December 12, 2023, which only partly
addressed the subject matter of CP16/22. A second near-final policy was published on September 12, 2024, addressing the remainder of CP16/22 and confirming the implementation date as January 1, 2026, subject to certain transitional
provisions. The PRA stated that it does not intend to change the policy or make substantive alterations to these “near-final” rules before publishing the final rules. The proposed changes affect existing approaches to calculation of risk
weights and introduce new limits around the use of internal models to calculate risk weights. In particular, the proposed rules introduce a floor on risk weighted assets that would require firms in scope of the output floor, with internal model
permissions, to calculate risk weighted assets for the purposes of compliance with own funds requirements and buffers, as the higher of: (i) the total risk weighted assets calculated using all approaches that they have supervisory approval to
use (including internal model approaches); and (ii) 72.5% of risk weighted assets calculated using only standardized approaches. With regards to the output floor transitional period, the PRA has decided to retain the proposed end-date of December 31, 2029. Therefore, the transitional period will begin on January 1, 2026, with 55% of risk weighted assets as the initial floor, increasing by 5% each year until full implementation.
However, on January 17, 2025, the PRA announced it had decided to delay the implementation of the BCBS package in the U.K. by one year until January 1, 2027, to allow more time for greater clarity to emerge about plan for its
implementation in the U.S. and that it