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Application provision

1.1  Unless otherwise stated, this Part applies to:

  1. (1) every firm that is a UK bank or a building society that, on the firm’s last accounting reference date, had retail deposits equal to or greater than £50 billion either on:
    1. (a) an individual basis;
    2. (b) if the firm is a parent institution in a Member State, on the basis of its consolidated situation; or
    3. (c) if the firm is controlled by a parent financial holding company in a Member State or by a parent mixed financial holding company in a Member State and the PRA is responsible for supervision of that holding company on a consolidated basis under Article 111 of the CRD, on the basis of the consolidated situation of that holding company; and
  2. (2) a ring-fenced body that is a member of a group containing a firm falling within 1.1(1).

4.1

14/12/2016

A firm must calculate a countercyclical leverage ratio buffer of common equity tier 1 capital equal to:

  1. (1) the firm’s institution-specific countercyclical capital buffer rate multiplied by 35% with the product expressed as a percentage rounded to the nearest tenth of a percentage; multiplied by
  2. (2) the firm’s total exposure measure.

4.2

01/01/2016

A firm must not count common equity tier 1 capital that is maintained for the purposes of 3.1 towards the calculation in 4.1