The PRA has published Policy Statement 17/15: Assessing capital adequacy under Pillar 2 (PS17/15) which contains the final rules, statement of policy and supervisory statements for the Pillar 2 capital framework.
The Pillar 2 capital framework for the banking sector is intended to ensure that firms have adequate capital to support the relevant risks in their business, and that they have appropriate processes to ensure compliance with the CRD IV. It is also intended to encourage firms to develop and use better risk management techniques in monitoring and managing their risks.
In PS17/15 the PRA:
- sets out its responses to the feedback on Consultation Paper 1/15: Assessing capital adequacy under Pillar 2;
- sets out changes to its rules;
- sets out changes to Supervisory Statement 31/15: The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP);
- sets out changes to Supervisory Statement 32/15: Pillar 2 reporting, including instructions for completing data items FSA071 to FSA082; and
- finalises the Statement of Policy, The PRA’s methodologies for setting Pillar 2 capital.
View Assessing capital adequacy under Pillar 2 – PS17/15, 30 July 2015