Company: HBCYF
Filing Date: 2025-02-25
Form Type: 424B5
Source: 0001193125-25-034819
Chunk: 42

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-25
Form: 424B5
Chunk 42
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 published Consultation Paper CP16/22 concerning the
implementation of the remaining elements of Basel 3.1 and subsequently published the first part of its near-final policy statement PS17/23 on December 12, 2023 which only partly addressed the subject matter of CP16/22. The second part of the
PRA’s near-final policy statement (PS9/24) was published on September 12, 2024. PS9/24 covers a revised standardized approach and internal ratings-based approach for credit risk, credit risk mitigation and the implementation of an output
floor requiring reported risk weighted assets calculated under internal model approaches to be a minimum of 72.5% of fully standardized calculations. PS9/24 also includes updates to the UK Pillar 3 disclosure requirements and PRA supervisory
reporting requirements. The implementation date of Basel 3.1 in the UK, i.e., the date on which the PRA’s rules and policies accompanying PS9/24 will come into effect has been and continues to be subject to change. Originally slated for
2025, the date was postponed to 2026 and, on January 17, 2025, to January 1, 2027 (allowing for greater clarity to emerge about plans for the implementation of Basel 3.1 in the United States). Thereafter, it is proposed that the full
extent of the output floor – a key component of the package – would be phased in over 3 years.

Alongside the publication of
PS9/24, on September 12, 2024 the PRA published a wider banking capital package comprising four consultation papers, including CP9/24 and CP10/24 which set out the PRA’s proposals to streamline the Pillar 2A capital framework and the
capital communications process as well as some of the PRA’s policy materials on capital buffers. CP8/24 and CP13/24 are consultations covering the PRA’s proposals

S-29

for the restatement and modification of a number of UK CRR provisions, including those relating to the definition of own funds. The PRA is also consulting on its proposals to implement the
remaining Basel III large exposures standards (CP14/24).

In addition, on June 26, 2020 the EU enacted a banking response to the Covid-19 pandemic (the “CRR Quick Fix”). The CRR Quick Fix included, among other things, provisions extending the transitional phase-in arrangements in relation to