PRA clarifies interaction between its buffer and the CRD IV combined buffer

March 30, 2016

The Prudential Regulation Authority (PRA) has published a statement clarifying its approach to adjustments to firms’ PRA buffers as the Capital Requirements Directive IV (CRD IV) combined buffer is implemented up to 2019. The statement sets out the timing of changes to firms’ PRA buffers following the announcement that the countercyclical capital buffer rate for the UK will be increased to 0.5%

The full statement is available on the PRA’s website here. An outline of AxiomSL’s solution for CRD IV capital requirements, including the conservative and countercyclical capital buffers, can be found by clicking here.