Update 8 August 2022
This supervisory statement has been deleted, following PS7/22 ‘Responses to Occasional Consultation Paper – March 2022’.
Update 7 December 2015
The PRA updated Supervisory Statement 3/13 to remove the existing expectation in relation to the leverage ratio, which has been superseded by policy issued on the UK leverage ratio framework.
This supervisory statement clarifies the Prudential Regulation Authority’s (PRA) expectations in relation to capital requirements for major UK banks and building societies (‘firms’).
Supervisory Statement 3/13 - December 2015
Published on 26 June 2014
This supervisory statement clarifies the Prudential Regulation Authority’s (PRA) expectations in relation to capital and leverage ratios for the eight major UK banks and building societies (“firms”). Firms will be expected to meet:
- A 7% common equity tier 1 (CET1) capital ratio on the definition of capital set out in the Capital Requirements Regulation (CRR) and the PRA Rulebook.
- A 3% end-point Tier 1 leverage ratio. For the avoidance of doubt, compliant Additional Tier 1 (AT1) instruments may be included in the numerator, and the Basel 2014 exposure measure should be used for the denominator. The leverage ratio should be calculated on an end-of-quarter basis.