Overview
This Supervisory Statement explains how the Prudential Regulation Authority (PRA) expects firms to which CRD IV applies to comply with the relevant provisions on the quality of capital in CRD IV. It builds on the high level expectations on capital set out in the PRA’s approach document to banking supervision and should also be read in conjunction with the Definition of Capital part of the PRA Handbook.
The areas covered by this Supervisory Statement include:
- the quality and composition of capital;
- Additional Tier 1 triggers;
- preference;
- subordination, remedies, events of default and set-off;
- regulatory capital and subordinated swaps;
- significant insurance holdings; and
- Connected Funding of a Capital Nature (CFCN)
Future version
Published on 17 July 2025. Effective from 1 January 2026.
- following PS12/25 – Restatement of CRR and Solvency II requirements in PRA Rulebook – 2026 implementation
Current version
Published 16 September 2022. Effective from 1 January 2023.
- Following PS8/22 - Definition of capital: Updates to PRA Rules and supervisory expectations
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Published on 8 November 2021. Effective from 1 January 2022.
- following PS25/21 – Responses to CP13/21 ‘Occasional Consultation Paper’.
Published on 10 March 2020. Effective from 1 April 2020 (superseded in January 2022 by November 2021 version).
- following PS5/20 ‘Regulatory capital instruments: update to Pre-Issuance Notification (PIN) requirements’.
Published on 19 December 2013. Effective from 19 December 2013