Non-trading deficit and PRA buffer: Difference between pages

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'.

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-''UK tax.''
+''Capital adequacy - UK''.
-For UK tax purposes, non-trading deficits include all debits arising from non-trading loan relationships.
+The PRA buffer is an amount of capital which UK-regulated banks are required to hold, determined following stress testing.
-Debits include all expenses, costs and losses, for example interest payable.
+The amount is determined by the UK regulator, the Prudential Regulation Authority (PRA), following consultation with the regulated bank.
-A non-trading deficit is where a company incurs net debits arising on non-trading loans.
-Non-trading deficits may be offset against total taxable profits for the year.
+Any PRA buffer which the regulator may set is additional to Individual Capital Guidance (ICG).
-==See also==
+The PRA buffer replaced the former 'capital planning buffer'.
-* [[Loan relationship]]
-* [[Loan relationship income]]
-* [[Non-trade]]
-* [[Non-trading debit]]
-* [[Non-trading loan]]
-[[Category:Accounting,_tax_and_regulation]]
+== See also ==
+* [[Buffer]]
+* [[Capital adequacy]]
+* [[Idiosyncratic stress]]
+* [[Individual Capital Guidance]]
+* [[Pillar 2]]
+* [[Prudential Regulation Authority]]
+* [[Reverse stress test]]
+* [[Scenario analysis]]
+* [[Shock]]
+* [[Stress]]