Mandate and PRA buffer: Difference between pages

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imported>Doug Williamson
(Reference dealing mandates expressly.)
 
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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1.
''Capital adequacy - UK''.


An authoritative command or instruction, for example one given to a bank by its customer.
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.


2.


An account (or bank) mandate completed by a customer to open a new bank account. The mandate specifies which individuals in the customer organisation are authorised to act on the account, in what capacity and up to what limits.
Any PRA buffer which the regulator may set is additional to Individual Capital Guidance (ICG).




3.
The PRA buffer replaced the former 'capital planning buffer'.
 
Agreements regulating the dealing relationship between an organisation and its counterparties, authorising people to conduct transactions, possibly applying limits to the size of deals and procedures concerning settlement, and regulating the opening and closing of transactions. 
 
Mandates are a key element of treasury [[controls]] and are an essential mechanism for reducing an organisation's dealing risk.
 
Also known as 'dealing mandates'.
 
 
4.
 
A bond mandate.  




== See also ==
== See also ==
* [[Board resolution]]
* [[Buffer]]
* [[Bond mandate]]
* [[Capital adequacy]]
 
* [[Idiosyncratic stress]]
[[Category:Compliance_and_audit]]
* [[Individual Capital Guidance]]
[[Category:Risk_frameworks]]
* [[Pillar 2]]
[[Category:Cash_management]]
* [[Prudential Regulation Authority]]
[[Category:Treasury_operations_infrastructure]]
* [[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

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