# The Bank of England Act 1998 (Macro-prudential Measures) (No.2) Order 2015, Article 4: Macro-prudential measures

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

(1) For the purposes of section 9H(1) and 9L of the Bank of England Act 1998, the following measures (and any measures falling within a listed measure) are prescribed in relation to the PRA—
(a) a measure to require UK banks , or their holding companies, and UK investment firms , or their holding companies, to hold sufficient Tier 1 capital to satisfy a minimum leverage ratio specified by the Financial Policy Committee;
(b) a measure to secure that relevant O-SIIs ordinarily hold sufficient Tier 1 capital to satisfy an O-SII additional leverage ratio specified by the Financial Policy Committee;
(c) a measure to secure that G-SIIs ordinarily hold sufficient Tier 1 capital to satisfy a G-SII additional leverage ratio specified by the Financial Policy Committee;
(d) a measure to secure that UK banks , or their holding companies, and UK investment firms , or their holding companies, ordinarily hold sufficient Tier 1 capital to satisfy a countercyclical leverage ratio buffer specified by the Financial Policy Committee.
(2) The Financial Policy Committee may also specify a minimum proportion of Common Equity Tier 1 capital that shall be held in relation to a measure specified in paragraph (1).
(3) The Financial Policy Committee may include in a direction relating to the countercyclical leverage ratio buffer a method of calculating the countercyclical leverage ratio buffer by reference to the prevailing countercyclical capital buffer rates.
(4) The Financial Policy Committee may include, in a direction relating to any of the measures specified in paragraph (1), specifications as to how the total exposure measure is to be determined for the purposes of that measure.

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Source: https://www.legislation.gov.uk/uksi/2015/905/article/4 (the official version)
Page: https://openlegislation.uk/bank-of-england-act-1998-macro-prudential-measures-no2-order-2015/article-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.