PRA Basel 3.1 Market Risk IMA Adjustments: What UK Banks Must Update in Capital and Pillar 3 Reporting
Last updated: June 2026 A trading desk that loses internal model treatment can face an immediate change in market risk capital. Under the PRA Basel 3.1 market risk rules, a desk that fails the model tests falls back to the standardised approach, and for many portfolios the standardised number is materially higher than the model…