Bank of England Streamlines Bank Failure Reporting and Disclosure

Bank of England News

Published March 26th, 2026

Detected March 26th, 2026

Summary

The Bank of England and Prudential Regulation Authority have finalised changes to bank resolution reporting and disclosure requirements. These updates increase the threshold for resolution assessment reporting and simplify MREL reporting and Pillar 3 disclosures, aiming to reduce regulatory burden for smaller firms while maintaining a robust regime for larger institutions.

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What changed

The Bank of England and Prudential Regulation Authority (PRA) have finalised a package of amendments to resolution reporting and disclosure requirements for banks. Key changes include increasing the retail deposit threshold for Resolution Assessment Framework (RAF) reporting from £50bn to £100bn, and requiring Small Domestic Deposit Takers to review recovery plans biennially instead of annually, effective April 1, 2026. Amendments to Minimum Requirement for Own Funds and Eligible Liabilities (MREL) reporting and Pillar 3 disclosures will simplify expectations and improve the explanation of resolvability resources, with these changes implemented from January 1, 2027.

These revisions are intended to reduce the regulatory burden on firms, particularly smaller and less complex ones, while ensuring the largest institutions remain resolvable and financial stability is maintained. Regulated entities, specifically banks, should note the different implementation dates for these changes. While the RAF threshold and recovery plan review frequency changes take effect on April 1, 2026, the MREL reporting and Pillar 3 disclosure updates will be implemented from January 1, 2027. Compliance officers should review the updated reporting templates and disclosure requirements to ensure adherence to the new standards.

What to do next

Review updated Resolution Assessment Framework (RAF) reporting thresholds and recovery plan review frequencies effective April 1, 2026.
Update MREL reporting processes and Pillar 3 disclosure practices to align with new requirements effective January 1, 2027.
Ensure relevant personnel are trained on the revised resolution reporting and disclosure expectations.

Source document (simplified)

Bank of England streamlines reporting and disclosure requirements for bank failure regime

The Bank of England and Prudential Regulation Authority have finalised a package of changes to firms’ resolution reporting and disclosure requirements which reduces the burden of regulation while maintaining a robust and credible regime that supports growth and competition.

Published on

26 March 2026

News release

The Bank of England and Prudential Regulation Authority (PRA) have finalised a package of changes to firms’ resolution reporting and disclosure requirements which reduces the burden of regulation while maintaining a robust and credible regime that supports growth and competition.

The UK’s resolution regime is designed to ensure that banks can fail safely, without disruption to critical services such as payments and deposit access, and without relying on public funds. By requiring firms to plan for failure in advance, the regime protects financial stability and supports confidence in the banking system.

The changes will help maintain:

A proportionate resolution assessment framework: The threshold for firms in scope of Resolution Assessment Framework (RAF) reporting and disclosure requirements will increase from £50bn to £100bn in retail deposits. At the same time, Small Domestic Deposit Takers will be required to review their recovery plans every two years rather than annually. This will be implemented from 1 April 2026.
Targeted MREL reporting: Amendments to Minimum Requirement for Own Funds and Eligible Liabilities (MREL) reporting will simplify and clarify existing expectations. These changes reduce overall reporting burden on firms while ensuring the Bank and PRA continue to receive the information needed to support effective resolution planning. This will be implemented from 1 January 2027.
Clear and meaningful disclosures: Changes to Pillar 3 disclosure will improve how firms explain their resolvability resources, any limits on capital distribution, and how they prepare their disclosures.

The approach is proportionate to firm size and complexity, limiting additional burden while ensuring market participants, customers and other stakeholders have access to decision-useful information. This will be implemented from 1 January 2027.
These changes follow confirmation that the Bank will delete several resolution reporting templates from 1 April 2026.

Dave Ramsden, Deputy Governor for Markets, Banking, Payments and Resolution, said:

“A credible resolution regime needs to be robust, but it also needs to be responsive and proportionate. These changes reflect the reduced risks that smaller and less complex firms pose to UK financial stability, while ensuring that the largest firms remain resolvable. By streamlining regulation we are supporting competition and sustainable growth, without compromising our ability to manage bank failure in an orderly way.”

In July 2025, the PRA published three consultation papers on aspects of the recovery and resolution framework. The policy statements published today incorporate feedback from stakeholders and set out how the final changes will be implemented.