PRA Launches Consultation on Pillar 2A Capital Framework

February 24, 2017

The PRA has launched a consultation paper (CP3/17) on refining the Pillar 2A capital framework. The CP addresses the disparity in capital requirements between firms that use the standardised approach (SA) – mainly smaller banks and building societies – and firms that use the Internal Ratings Based Approach (IRB). The changes are aimed at facilitating effective competition and ensuring that the capital standards are not overly prudent for smaller firms.

For further details, please see full press release here.