Prudential Regulation Authority Rulebook

1.

By way of derogation from Chapters 3 and 4 of Title IV (The Net Stable Funding Ratio) an institution may apply to the competent authority for permission to apply a higher available stable funding factor or a lower required stable funding factor to assets, liabilities and committed credit or liquidity facilities with a counterparty who:

1. (a) is one of the following:
1. (i) the parent or a subsidiary of the institution;
2. (ii) another subsidiary of the same parent;
3. (iii) an undertaking that is related to the institution within the meaning of provisions implementing Article 22(7) of Directive 2013/34/EU;
2. (b) applies a required stable funding factor that is equal to or higher than the higher available stable funding factor or applies an available stable funding factor that is equal to or lower than the lower required stable funding factor; and
3. (c) is established in the United Kingdom.

[Note: This is a permission under section 144G of FSMA to which Part 8 of the Capital Requirements Regulations applies]