Laura WilesThe PRA is consulting on increasing the retail deposits leverage ratio threshold to £70bn. Firms with over £50bn in retail deposits or £10bn of non-UK assets are currently required to meet a minimum leverage ratio requirement of 3.25% plus buffers.
The regulator is proposing to increase the former threshold to reflect nominal GDP growth since 2016, when it took effect. The change would ensure that the requirement continues to capture major UK banks, building societies and investment firms, but allows smaller firms more scope for growth.
The £10bn non-UK asset threshold is not subject to consultation, as it came into effect more recently in 2023 and the PRA feels it continues to operate as intended.
The consultation closes on 5 June 2025.