EFTA and PRA buffer: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Create the page. Sources: HSBC AR 2015; KPMG http://kpmg.co.uk/creategraphics/2015/01_2015/CRT033541/CRT033541_print.html)
 
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European Free Trade Association.  
''Capital adequacy - UK''.


The PRA buffer is an amount of capital which UK-regulated banks are required to hold, determined following stress testing.


EFTA's four members are:
The amount is determined by the UK regulator, the Prudential Regulation Authority (PRA), following consultation with the regulated bank.


Iceland, Liechtenstein, Norway and Switzerland.


Any PRA buffer which the regulator may set is additional to Individual Capital Guidance (ICG).


The geographic area covered by EFTA is sometimes known as the European Free Trade ''Area''.


 
The PRA buffer replaced the former 'capital planning buffer'.
====Relationships with the European Union (EU)====
Iceland, Liechtenstein and Norway are members of the European Economic Area (EEA), which applies key EU legislation in relation to free trade throughout the EEA.
 
Switzerland has a separate bilateral trade agreement with the EU.




== See also ==
== See also ==
* [[European Economic Area]]
* [[Buffer]]
* [[European Union]]
* [[Capital adequacy]]
* [[Money laundering]]
* [[Idiosyncratic stress]]
* [[Schengen Area]]
* [[Individual Capital Guidance]]
* [[Pillar 2]]
* [[Prudential Regulation Authority]]
* [[Reverse stress test]]
* [[Scenario analysis]]
* [[Shock]]
* [[Stress]]

Revision as of 15:01, 29 October 2016

Capital adequacy - UK.

The PRA buffer is an amount of capital which UK-regulated banks are required to hold, determined following stress testing.

The amount is determined by the UK regulator, the Prudential Regulation Authority (PRA), following consultation with the regulated bank.


Any PRA buffer which the regulator may set is additional to Individual Capital Guidance (ICG).


The PRA buffer replaced the former 'capital planning buffer'.


See also