First published on 5 December 2023
This statement of policy (SoP) sets out the PRA’s approach to operating the Small Domestic Deposit Takers (SDDT) regime. It covers:
- how UK banks and building societies (‘firms’) that meet the SDDT criteria, and CRR consolidation entities that meet the SDDT consolidation criteria can access the SDDT Regime;
- how firms and CRR consolidation entities that are part of groups based outside of the UK could access the SDDT regime;
how firms and consolidation entities will be treated in the case of a merger, acquisition, a disposal of entities or activities, or similar circumstances; - how firms that cease to meet the SDDT criteria, and consolidation entities that cease to meet the SDDT consolidation criteria, will transition out of the SDDT regime; and
- the PRA’s approach to reviewing the SDDT criteria.
This SoP should be of interest to PRA-authorised banks and building societies and to CRR consolidation entities, as well as to entities prospectively interested in, or currently applying for, authorisation as a deposit-taker. It should be of particular interest to firms that meet the SDDT criteria and CRR consolidation entities that meet the SDDT consolidation criteria, and to firms and CRR consolidation entities wishing to be treated in the same way as those that meet the criteria.