Liquidity framework policy statement postponed to early 2027
Postponement of the policy statement on modernising the liquidity framework to the first quarter of 2027 highlights the Prudential Regulation Authority's September digest. The update also covers auditor feedback on bank IFRS 9 credit loss accounting and technical taxonomy changes.
Liquidity delay and credit risk reviews
The Prudential Regulation Authority (PRA) has deferred the publication of its policy statement for consultation paper CP5/26 on modernising the liquidity framework from the fourth quarter of 2026 to the first quarter of 2027.
In banking supervision, David Bailey issued a letter to chief financial officers providing thematic findings on IFRS 9 expected credit loss accounting, focusing on data governance, model risk, and climate risk.
For the insurance sector, the regulator published roundtable feedback on CP11/26, which proposes a streamlined regime for single-parent captive insurers with four- to six-week authorisation targets and reduced capital requirements ahead of the 14 October consultation close.
Reporting taxonomies and zero public comments
Technical reporting updates will take effect on 1 January 2027.
The Bank of England Banking taxonomy v4.1.1 fixes defects in PRA001 and PRA116 entry points, while Insurance taxonomy v2.2.0 introduces the MALIR framework under Solvency UK for reference dates from 31 December 2026.
Separately, the PRA confirmed that no representations or public comments were received during the statutory consultation on its 2025/26 Annual Report, which closed on 25 September after being laid before the Chancellor.
Routine maintenance with delayed reform
Postponing liquidity rules grants banks short-term relief while prolonging regulatory uncertainty.
The total absence of annual report feedback shows that statutory consultations rarely engage market participants.
Captive insurance reform remains the only meaningful deregulation on offer.
Source: PRA Regulatory Digest – September 2026
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