On 17 July 2020, HM Treasury issued a statement clarifying which amendments made to the Capital Requirements Regulation (CRR) and the Second Capital Requirements Regulation (CRR 2) in response to the COVID-19 pandemic will be transposed by the UK before the end of the transition period. The European Commission made amendments to the CRR and CRR 2 in Regulation (EU) 2020/873 which entered into the Official Journal of the EU on 26 June 2020.

The following sets out provisions within Regulation (EU) 2020/873, which will become retained EU law under the European Union (Withdrawal) Act 2018 (as amended by the European Union (Withdrawal Agreement) Act 2020), and will not be applicable in the UK as they apply after the end of the Transition Period:

• Article 1(4) of Regulation (EU) 2020/873: Amendments to article 429a, as amended by Regulation (EU) 2019/876 setting out the basis on which central bank exposures (CBEs) may be excluded from the calculation of the leverage ratio.
• Article 2(2) of Regulation (EU) 2020/873: Requirement for own funds for G-SIIs (Globally Systemically Important Institutions) laid down in Article 92(1a) of Regulation (EU) 575/2013, will apply from 1 January 2023.

Regarding the provisions which will not apply before the end of the transition period, HM Treasury states that these are matters relating to the leverage ratio and G-SII requirements are for the Financial Policy Committee (FPC) and Prudential Regulation Authority (PRA) to consider as part of the FPC-PRC leverage ratio framework.