Regulation 16 Power for the PRA to require an O-SII buffer to be maintained

The PRA may require a relevant O-SII to maintain Common Equity Tier 1 capital, to be known as an “O-SII buffer”.

The amount of capital which the PRA may require a relevant O-SII to hold (“the buffer rate”) must be expressed as a percentage of the relevant O-SII’s total risk exposure amount calculated in accordance with Article 92 (own funds requirements) of the Capital Requirements Regulation.

In this regulation, “Common Equity Tier 1 capital” has the meaning given in Article 50 (common equity tier 1 capital) of the Capital Requirements Regulation.