In its latest Financial Stability Report, the FPC (a committee of the Bank of England) set out recommendations for the UK's new regulator - the Prudential Regulation Authority - to improve the stability of the UK banking sector, including:
- using the Basel III liquidity coverage ratio to assess liquidity;
- increasing the consistency and comparability of Pillar 3 disclosures; and
- calculating regulatory capital ratios under end-point Basel III definitions using the standardised approach to credit risk. Report.