Restructure of the Banking Supervision Handbook

Release date
01/07/2021

Status: The Handbook redesign is underway.

Consultation period: 2016-2022

A key new project identified by the 2015 Regulatory Stocktake was the restructure of the Banking Supervision Handbook. The Handbook redesign is a major project that is taking place in four stages, beginning in 2016 and extending to 2022.

The first and most challenging stage of the project has involved re-organising and clarifying the documents that make up the capital adequacy framework. Work progressed over 2016-19 as resourcing allowed, and benefitted from feedback from a bank working group.

As part of the work on the Capital Review, it was decided that the implementation of the Capital Review policy changes should be combined with issuing the replacement documents for the new capital adequacy framework.

We announced the Capital Review final decisions on 5 December 2019. Following delays arising from COVID-19, we published the full set of exposure drafts to implement the new capital adequacy framework on 17 November 2020.

We have now taken on board feedback on the exposure drafts, and we published the final set of documents on 17 June 2021. The requirements set out in these documents will come into effect on 1 October 2021, via changes to banks’ conditions of registration. 

We have made some progress to date on the standardisation and rationalisation of the other Handbook documents that do not deal with capital adequacy, and work will resume on these now that the capital adequacy documents have been finalised.

We plan to publish the full revamped Handbook during 2022.