Industry update

Consultation launched on changes to Pillar 2 and prudential reporting

We’ve published a consultation on proposed updates to our requirements relating to Pillar 2 and prudential reporting, as part of our wider Basel III implementation programme.

These proposals aim to ensure that our supervisory approach and reporting framework align with our revised prudential requirements. We have published near-final drafts of those requirements and plan to finalise them by the end of July 2026.

Read the full consultation on changes to Pillar 2 and prudential reporting.

Submit your response by 5:00pm on 31 July 2026.

Who does this affect?

The proposals in this consultation paper directly apply to Jersey incorporated banks (JIBs).

Sections 4.3 and 4.4, which cover potential future changes to prudential reporting, are also relevant to Jersey branches.

Basel III implementation will indirectly affect customers of banks in Jersey, either through these proposals for JIBs or through home-state implementation for Jersey branches.

Summary of proposals

Pillar 2

  • update our Pillar 2 guidance to reflect changes to our prudential reporting requirements arising from our Basel III implementation
  • bring all relevant liquidity guidance into a separate section to ensure all guidance is in a single document
  • clarify how JIBs should assess appropriateness of capital minima and Pillar 2 buffers
  • provide guidance on transitional arrangements including seeking information on capital minima and buffers for the purpose of setting capital conditions
  • move towards a more risk based, proportionate Pillar 2 framework, including potential changes to internal capital adequacy assessment process (ICAAP) and supervisory engagement

Prudential Reporting

  • substantial changes to prudential reporting for JIBs to reflect areas where our rules will change significantly as part of Basel III implementation
  • modest amendments to other areas where necessary

We also ask you views on proposed changes to branch reporting requirements, including the collection of data relevant to the Jersey Bank Depositors Compensation Scheme, as well as our plans to move to a more streamlined reporting framework in the longer term.

Next steps

We will consider your feedback and publish a feedback paper with our analysis and responses.
Taking account of consultation feedback and any changes arising from the finalisation of the prudential requirements, in Q3 2026 we will publish:

  • updated pillar 2 guidance
  • new and revised prudential return completion guides
  • a revised Banking Code: Main Body, removing the superseded prudential requirements in section 5 and the appendices and reflecting these proposals

We are also updating our prudential reporting system to accept the revised returns. We will invite JIBs to test the new system ahead of transition in 2027.