On 8 October 2021, the PRA issued a statement confirming it was maintaining firms’ Other Systemically Important Institutions (O-SII) buffer rates at 2019 levels for a further year.

The PRA is required to review O-SII buffer rates once a year, but the PRA states that barring an unforeseen change in circumstances, it does not currently expect the 2022 review to result in any changes. This should take pressure off end-2021 balance sheets (which would otherwise form the basis of the 2022 rate assessment).

The PRA expects to reassess O-SII buffer rates again in December 2023.

The PRA also reiterates its expectation that all elements of banks’ capital and liquidity buffers can be drawn down as necessary to support the economy.