PRA Near-final Policy Statement On CRR Restatement For 2027 Implementation

On 28 October 2025, the Prudential Regulation Authority (PRA) released near-final policy statement PS19/25, setting out how Capital Requirements Regulation (CRR) rules will be restated for UK banks and building societies from 2027. Most CRR rules are being carried over with little change, but there are targeted updates—especially to securitisation, with a new formulaic p-factor for the standardised approach, new capital rules for certain mortgages, and clearer rules on unfunded credit protection in synthetic securitisations. The policy also updates criteria for Simple, Transparent and Standardised (STS) securitisations and risk weights to match Basel 3.1, and clarifies how External Credit Assessment Institution (ECAI) mapping works. Firms must review these changes now, prepare for a 1 January 2027 start, and watch for further consultation on issues like Internal Ratings Based (IRB) treatment of mortgage guarantees. Final rules will follow once HM Treasury gives the