The BSA welcomes the PRA’s consultation on modernising the liquidity framework and supports its objective of strengthening resilience in light of evolving market conditions. In particular, the increased focus on the usability of liquidity in stress reflects important lessons from recent events.

We agree that this is not the right time to revisit the calibration of underlying liquidity ratios, which continue to provide a robust foundation for the framework.

It is also important that the Bank of England is operationally ready to support the proposed changes, particularly in relation to the pre‑positioning of collateral.

We welcome continued engagement with industry to ensure the final framework is proportionate, practical and supports both resilience and sustainable growth.

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Related policy brief:  PRA's liquidity framework (members only)