PRA is consulting on further proposed changes to its rules, supervisory statements and statements of policy to implement elements of CRD V, and also to make changes to the UK framework to take account of parts of CRR II that will apply during the transition period. The consultation builds on previous papers, and covers:
- the requirement for approval and supervision of certain holding companies;
- enhancing supervisory requirements on interest rate risk in the banking book;
- the application of the capital buffers framework;
- amending the maximum distributable amount that constrains a firm’s distributions when it uses its capital bufferes;
- clarifying the quality of capital required to meet Pillar 2 requirements; and
- adjustments to the process through which variable capital requirements may be applied to real estate exposures and methods that may be used for the purposes of prudential consolidation.
It asks for comments by 17 November, because it needs to meet the transposition deadline of 28 December.