SS7/13 - Definition of capital (CRR firms)

Supervisory Statement 7/13
First published on 19 December 2013


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)

Current version

Published 16 September 2022. Effective from 1 January 2023.

- Following PS8/22 - Definition of capital: Updates to PRA Rules and supervisory expectations