Guidance

SS6/14 – Implementing CRD; Capital buffers

Chapter

Introduction

Printed on: 06/11/2024

Rulebook at: 01/01/2021

1

Introduction

1.1

This supervisory statement is relevant to all PRA-regulated banks, building societies, designated investment firms and all PRA-approved or PRA-designated holding companies.

  • 01/01/2021

1.2

The purpose of this supervisory statement is to set out the expectations of the Prudential Regulation Authority (PRA) on the combined buffers and provide some clarifications of the PRA rules.[1] This statement complements the requirements set out in Title VII Chapter 4 of the CRD and the Capital Buffers Part of the PRA Rulebook and the high-level expectations on capital outlined in The PRA’s approach to banking supervision.[2]

  • 1. This supervisory statement instead does not address the PRA’s expectations on the relationship between MREL and buffers, which are set out in PRA SS 16/16 - The minimum requirement for own funds and eligible liabilities (MREL) – buffers and Threshold Conditions.
  • 2. www.bankofengland.co.uk/pra/Pages/supervision/approach/default.aspx.
  • 01/01/2021