PRA has published a set of FAQs on using liquidity and capital buffers in response to the issues caused by Covid-19. The FAQs address what the buffers are, how banks can use them and the implications of them doing so. They also note that banks will need to restore any buffers used, and that there is no set time period for doing this – and that PRA will generally expect this not to be complete until significantly after the end of the stress.
