1

Introduction

1.1

This supervisory statement is aimed at CRR firms.   

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.

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