Feedback on the Basel III Prudential Roadmap: large exposures and general matters

Summary

This is JFSC feedback paper responding to its January 2026 consultation on the Basel III Prudential Roadmap covering large exposures and general matters. It summarises industry comments received from Jersey incorporated banks (JIBs) and sets out the JFSC's revised approach ahead of finalising prudential Codes.

• General matters: JFSC will align its implementation directly with the UK PRA's final rulebook, having issued near-final documents to banks in April and May 2026.
• Market risk, trading book and counterparty credit risk: Existing requirements will be retained subject to consequential amendments; reverse repos will be treated as secured lending, with exposures calculated net of collateral.
• Large exposures: JFSC will align closely with the PRA large exposures rulebook, apply limits to net exposures after credit risk mitigation, adopt PRA exemptions for low-risk exposures including sovereigns, correct the de-minimis threshold for bank exposures to £130 million (from a previously stated £139 million), and drop the 800% aggregate limit and foreign currency add-on.
• Securitisations: Requirements will align with the PRA rulebook and associated policy materials, as reflected in the near-final drafts.
• Capital and ratios: JFSC will retain the substance of existing capital definitions and ratios, and will permit inclusion of unaudited but formally confirmed final year profit in Common Equity Tier 1 capital, in line with PRA rules.

Near-final draft Codes have been published and JFSC is inviting further feedback on detailed requirements by 12 July 2026. Final prudential Codes will be published in July 2026, taking effect from 1 July 2027, with optional early transition available from 1 January 2027; all aspects for Jersey incorporated banks will be live in H2 2027.

Key obligations

• Jersey incorporated banks and other interested parties wishing to comment on the near-final draft Basel III documents must submit feedback to the JFSC by 12 July 2026.
• Banks must prepare to comply with the finalised prudential Codes, which take effect from 1 July 2027, with an option to transition early from 1 January 2027.

Applies to

banks, Jersey incorporated banks (JIBs)

Deadlines

• 12 July 2026: Deadline for feedback on the near-final draft Basel III documents
• July 2026: Final prudential Codes to be published
• 1 January 2027: Optional early transition date for the new Codes
• 1 July 2027: Final prudential Codes take effect
• H2 2027: All Basel III aspects for Jersey incorporated banks to be fully live