The PRA has issued its final policy amending the UK capital buffers framework, which includes streamlining of policy materials to enhance usability and clarity.
The changes to the framework have been implemented as proposed, and include:
- statement of policy on the PRAs approach to identifying global systemically important institutions (G-SIIs) and setting G-SII buffers;
- amendments to SoP the PRAs approach to identifying other systemically important institutions (O-SIIs);
- amendments to SoP the PRAs approach to the implementation of the O-SII buffer;
- reporting instructions for the purpose of identifying and assigning GSII buffer rates;
- PRA Standards Instrument: The Technical Standards (specification of the methodology for the identification of Global Systemically Important Institutions) Instrument 2025; and
- PRA Rulebook: CRR firms: capital buffers (consequential amendments) instrument 2025.
The updated framework will come into effect on 31 July 2025.