This statement of policy (SoP) sets out the PRA’s approach to operating the Interim Capital Regime (ICR).
It covers:
- how UK banks and building societies (‘firms’) that meet the Small Domestic Deposit Taker (SDDT) criteria, and CRR consolidation entities that meet the SDDT consolidation criteria, can access the ICR;
- how firms and CRR consolidation entities that are part of groups based outside of the UK could access the ICR;
- how firms and consolidation entities will be treated in the case of a merger, acquisition, a disposal of entities or activities, or similar circumstances; and
- how firms that cease to meet the SDDT criteria, and consolidation entities that cease to meet the SDDT consolidation criteria, will transition between the ICR and the Basel 3.1 standards (as implemented by the PRA).
This SoP should be of interest to PRA-authorised banks and building societies, and to CRR consolidation entities, as well as entities prospectively interested in, or currently applying for, authorisation as a deposit-taker. It should be of particular interest to firms that meet the SDDT criteria, and CRR consolidation entities that meet the SDDT consolidation criteria, and firms and CRR consolidation entities wishing to be treated in the same way as firms and CRR consolidation entities meeting those criteria.