The systemic risk buffer (SRB) is one of the elements of the overall capital framework for UK banks and building societies as set out by the Financial Policy Committee (FPC) in its publication ‘The framework of capital requirements for UK banks’, which was published alongside the December 2015 Financial Stability Report.
The SRB is applied to individual institutions by the PRA and was introduced at the same time ring-fencing came into force at the start of 2019
On 1 May 2019, the PRA published a document containing the SRB rates for ring-fenced banks and large building societies applicable from 1 August 2019.
The PRA has set SRB rates by applying the FPC’s framework to the total assets of the SRB institutions as of end-December 2018, assessed on a sub-consolidated basis for ring-fenced banks, and on a consolidated basis for building societies.
In the future, the PRA expects to publish the SRB rates by 15 December of each year, with application by 1 January of the second year following the calendar year when the rates are published.