In line with the BCBS framework, PRA is consulting on updates to the UKTS methodology for identifying and setting a capital buffer for global systemically important institutions.
The changes to the UKTS would include:
- Adding ‘trading volume’ as a new indicator under the ‘substitutability/financial institution infrastructure’ category;
- Updating indicator weights for the ‘substitutability/financial institution infrastructure’ category;
- Adding insurance subsidiaries to data consolidation for several indicators; and
- Deleting transitional provisions for initial implementation in 2015.
The consultation closes on 29 August 2023.