On 12 July 2018, the PRA published a statement on systemic risk buffers (SRBs) and Pillar 2A in stress test hurdle races. The statement is only relevant to those firms that are subject to the CRD IV and the Capital Requirements Regulation. It provides details on two of the changes that: hurdle rates will incorporate buffers to capture domestic systemic importance as well as global systemic importance; and the calculation of minimum capital requirements incorporated in the hurdle rates will more accurately reflect how they would evolve in a real stress.
Read more detail on Recent Banking and Finance Law posts –
