The U.K. Prudential Regulation Authority has published a Policy Statement following its consultation last year on changes to the Pillar 2 capital requirements for banks and large investment firms. The amendments will apply from January 23, 2020. The PRA has made some changes to the proposed text following feedback from respondents that further clarification would be helpful, in particular on the setting of the PRA buffer using the hurdle rate in stress, buffer interactions and usability. The amendments are implemented in:
- Statement of Policy, "The PRA's methodologies for setting Pillar 2 capital";
- Supervisory Statement, "The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP)" (SS31/15); and
- Supervisory Statement, "Implementing CRD IV: Capital buffers" (SS6/14).
View the Policy Statement.
View the updated Statements.
View details of the PRA's consultation.