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Article 2 Macro-prudential measures

(1)

The measures listed in the first column of the table (and any measure falling within a listed measure) are prescribed in relation to the regulator specified in the second column of the table.

(2)

F1Subject to paragraph (3), each of those measures may be applied on, or by reference to, a solo basis or on, or by reference to, a consolidated basis.

Macro-prudential measures

Macro-prudential measureRegulator
To require UK banks F2, or their holding companies, to maintain additional own funds M1 by reference to their residential property exposures, commercial property exposures or financial sector exposures or to impose requirements on UK banks , or their holding companies, by reference to the failure to maintain such additional own fundsPRA
To require UK investment firms which are PRA-authorised persons F3, or their holding companies, to maintain additional own funds by reference to their residential property exposures, commercial property exposures or financial sector exposures or to impose requirements on such UK investment firms F4, or their holding companies, by reference to the failure to maintain such additional own fundsPRA
To require UK banks , or their holding companies, to treat residential property exposures, commercial property exposures or financial sector exposures as if they gave rise to an increased level of risk specified by the FPCPRA
To require UK investment firms which are PRA-authorised persons , or their holding companies, to treat residential property exposures, commercial property exposures or financial sector exposures as if they gave rise to an increased level of risk specified by the FPCPRA
F5(3)

Where a measure listed in the table is applied to the holding company of a UK bank or of a UK investment firm which is a PRA-authorised person, the measure may only be applied to that holding company on, or by reference to, a consolidated basis.

Annotations

Textual amendments

F1

Words in art. 2(2) inserted (21.7.2021) by The Bank of England Act 1998 (Macro-prudential Measures) (Amendment) Order 2021 (S.I. 2021/869), arts. 1(2), 2(3)

F2

Words in art. 2(2) inserted (21.7.2021) by The Bank of England Act 1998 (Macro-prudential Measures) (Amendment) Order 2021 (S.I. 2021/869), arts. 1(2), 2(4)

F3

Words in art. 2(2) inserted (21.7.2021) by The Bank of England Act 1998 (Macro-prudential Measures) (Amendment) Order 2021 (S.I. 2021/869), arts. 1(2), 2(5)

F4

Words in art. 2(2) inserted (21.7.2021) by The Bank of England Act 1998 (Macro-prudential Measures) (Amendment) Order 2021 (S.I. 2021/869), arts. 1(2), 2(6)

F5

Art. 2(3) inserted (21.7.2021) by The Bank of England Act 1998 (Macro-prudential Measures) (Amendment) Order 2021 (S.I. 2021/869), arts. 1(2), 2(7)

Marginal citations

M1

Articles 56 to 67 of the banking consolidation directive describe what the unconsolidated own funds of a credit institution are, for regulatory purposes, to consist of.