January 23, 2020

Prudential Regulation Authority publishes PS2/20 Pillar 2 capital: Updates to the framework

Prudential Regulation Authority publishes PS2/20

Pillar 2 capital: Updates to the framework

23 January 2020
This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 5/19 ‘Pillar 2 capital: Updates to the framework’ (see page 2 of 2). The PS contains the final amendments to the Pillar 2 framework and the updates to the following Statement of Policy (SoP) and Supervisory Statements (SS):  
  • SoP ‘The PRA’s methodologies for setting Pillar 2 capital’, (Appendix 1);
  • SS31/15 ‘The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP)’, (Appendix 2); and
  • SS6/14 ‘Implementing CRD IV: Capital buffers’, (Appendix 3).
This PS is relevant to PRA-authorised banks, building societies and PRA-designated investment firms (firms). It is not relevant to credit unions, insurance and reinsurance firms. 
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Letter from Sarah Breeden and David Bailey ‘Removal of bespoke liquidity risk appetite’

Letter to Chief Financial Officers of PRA Regulated UK Deposit Takers and International Banks
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