PRA consults on definition of capital

The PRA has published a Consultation Paper which proposes updates to PRA SS 7/13 ‘Definition of capital (CRR firms). The proposed rules are set out in full in Appendix 3.

This suggestion is part of the broader proposed approach outlined in the paper of transferring the UK Technical Standards for own funds requirements for institutions into PRA rules, including amendments to reflect the revisions to the Capital Requirements Regulation (CRR) which have applied since June 2019. The approach, if implemented, would amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook. The proposed implementation date for these changes, as well as the amendment to PRA SS 7/13, is September 2022.

The deadline to respond to the consultation is 2 May 2022.

Emma Bond