# The Bank of England Act 1998 (Macro-prudential Measures) (No.2) Order 2015, Article 2: Interpretation

Extent: E+W+S+N.I.

(1) In this Order—
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“Common Equity Tier 1 capital” has the meaning given by Article 50 of the capital requirements regulation;
“consolidated basis” means, in relation to a measure, on the basis that the undertaking to which the measure applies and one or more other undertakings are to be treated as a single undertaking;
“cost benefit analysis” means—
(a)an analysis of the costs and benefits of any change in rules made pursuant to Part 9A or section 192XA of the Financial Services and Markets Act 2000 to give effect to a subsequent direction; and
(b)where the costs and benefits can reasonably be estimated and it is reasonably practicable to produce an estimate, an estimate of those costs and of those benefits;
“countercyclical capital buffer rate” means any of the rates that UK banks and investment firms must apply to calculate their institution-specific countercyclical capital buffer;
“Financial Policy Committee” has the meaning given by section 9B of the Bank of England Act 1998 ;
“G-SII” means a global systemically important institution, as identified by the PRA ... ;
“G-SII additional leverage ratio” means a leverage ratio calculated by reference to the rate of the buffer which the PRA requires a G-SII to maintain;
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“holding company” means a financial holding company or a mixed financial holding company;
“individual basis” in relation to a macro-prudential measure applicable to an institution, means the application of that measure in respect of that institution only;
“institution-specific countercyclical capital buffer” has the meaning given in regulation 2 of the Capital Buffers and Macro-prudential Measures Regulations 2025;
“investment firm” has the meaning given by section 424A of the Financial Services and Markets Act 2000;
“leverage ratio” means an institution's Tier 1 capital divided by its total exposure measure, with this ratio expressed as a percentage;
“O-SII additional leverage ratio” means a leverage ratio calculated by reference to the rate of the O-SII buffers which the PRA requires a relevant O-SII to maintain pursuant to Part 3 of the Capital Buffers and Macro-prudential Measures Regulations 2025;
“O-SII buffer” has the meaning given by regulation 16 of the Capital Buffers and Macro-prudential Measures Regulations 2025;
“PRA” means the Prudential Regulation Authority;
“PRA-authorised person” has the meaning given by section 2B of the Financial Services and Markets Act 2000 ;
“relevant O-SII has the meaning given in regulation 14 of the Capital Buffers and Macro-prudential Measures Regulations 2025;
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“Tier 1 capital” has the meaning given by Article 25 of the capital requirements regulation;
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“UK bank” means a UK institution which has permission under Part 4A of the Financial Services and Markets Act 2000 to carry on the regulated activity of accepting deposits, but excludes—
(a)a credit union within the meaning of section 31 of the Credit Unions Act 1979 , or
(b)a person with permission under Part 4A of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance as principal;
“UK institution” means an institution which is established in the United Kingdom and is incorporated, or formed under the law of any part of the United Kingdom; and
“UK investment firm” means a UK institution which—
(a)has permission under Part 4A of the Financial Services and Markets Act 2000;
(b)is a PRA-authorised person by virtue of a designation under article 3 of the Financial Services and Markets Act 2000 (PRA-regulated Activities) Order 2013 ; and
(c)is an investment firm.
(2) Subject to article 4(4), “total exposure measure” has the meaning given in rules made by the PRA as amended from time to time.

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Source: https://www.legislation.gov.uk/uksi/2015/905/article/2 (the official version)
Page: https://openlegislation.uk/bank-of-england-act-1998-macro-prudential-measures-no2-order-2015/article-2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.