Net credit/debit position and PRA buffer: Difference between pages

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imported>Doug Williamson
m (Add category.)
 
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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''Netting systems''.  
''Capital adequacy - UK''.


A participant’s net credit or net debit position in a netting system is the sum of the value of all the transfers the participant has received up to a particular point in time, minus the value of all the transfers the participant has sent.
The PRA buffer is an amount of capital which UK-regulated banks are required to hold, determined following stress testing.


If the difference is positive, the participant is in a net credit position.
The amount is determined by the UK regulator, the Prudential Regulation Authority (PRA), following consultation with the regulated bank.


If the difference is negative, then the participant is in a net debit position.


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


The net credit or net debit position at settlement time is defined as the net settlement position. 


These net positions may be calculated on a bilateral or multilateral basis.
The PRA buffer replaced the former 'capital planning buffer'.




== See also ==
== See also ==
* [[Credit]]
* [[Buffer]]
* [[Debit]]
* [[Capital adequacy]]
* [[Netting]]
* [[Idiosyncratic stress]]
 
* [[Individual Capital Guidance]]
[[Category:Accounting,_tax_and_regulation]]
* [[Pillar 2]]
[[Category:Cash_management]]
* [[Prudential Regulation Authority]]
[[Category:Liquidity_management]]
* [[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