1
Introduction
1.1
This supervisory statement is aimed at CRR firms.
- 01/01/2022
1.2
This statement outlines the Prudential Regulation Authority’s (PRA’s) expectations in relation to large exposure requirements within the Large Exposures (CRR) Part of the PRA Rulebook. It covers:
- Applications to include undertakings wihtin a core UK Group (CRR Article 113(6)) and non-core large exposures group (CRR 400(2)(c)).
- Exemptions of exposures that support resolution (CRR Article 400(2)(c)).
- Sovereign large exposures exemptions (CRR Article 400(2)(g) of (h)) and exposures to trustees.
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1.3
This statement should be read in conjunction with the specified CRR articles, the requirements in the Large Exposures Part of the PRA Rulebook and the high-level expectations outlined in The PRA’s approach to banking supervision.[1] For RFBs, as defined in the Financial Services and Markets Act (FSMA), section 142A, or any other PRA-authorised person that is a member of a group containing an RFB, this statement should be read alongside the PRA’s Supervisory Statement 8/16 ‘Ring-fenced bodies (RFBs)’.[2]
Footnotes
- 1. https://www.bankofengland.co.uk/prudential-regulation/publication/pras-approach-to-supervision-of-the-banking-and-insurance-sectors
- 2. PRA Supervisory Statement 8/16 ‘Ring-fenced bodies’, July 2016, available at: www.bankofengland.co.uk/pra/Pages/publications/ss/2016/ss816.aspx
- 01/01/2022