PRA Proposes to Apply Leverage Ratio Framework to Systemic RFBs

To implement the proposed changes, PRA proposes to update the following:

• Parts of the PRA Rulebook—namely leverage ratio, public disclosure, reporting leverage ratio, and ring-fenced bodies framework (Appendix 1)
• The supervisory statement SS45/15 on UK leverage ratio framework (Appendix 2)
• SS46/15 titled "UK leverage ratio: instructions for completing data items FSA083 and FSA084" (Appendix 3)
• FSA083 leverage ratio reporting template (Appendix 4) and instructions (Appendix 5)

CP14/18 is relevant to the firms, in scope of the UK leverage ratio framework, that are also systemic risk buffer institutions or part of a group containing an systemic risk buffer institution. The proposals complement the risk-weighted capital framework by guarding against the risks of relying only on models or standardized approaches to set capital requirements. This promotes the safety and soundness of firms whose distress or failure could cause material harm to the UK economy.

Related Links

• Press Release
• CP14/18 (PDF)

Comment Due Date: September 25, 2018

Effective Date: January 01, 2019

Keywords: Europe, UK, Banking, Systemic Risk, Systemic Risk Buffer, Leverage Ratio, CP14/18, PRA