# The Capital Buffers and Macro-prudential Measures Regulations 2025, Regulation 18: Determination by PRA of buffer rates for individual relevant O-SII


(1) The PRA may, in relation to each relevant O-SII, determine—
(a) whether or not to set a buffer rate for the relevant O-SII, and
(b) where it sets a buffer rate, the level of the rate,
by applying the steps set out in paragraph (2).
(2) The steps set out in this paragraph are—
Step 1: determining the level of consolidation
The PRA must choose one of the following bases on which to apply the criteria specified in the FPC framework to the relevant O-SII—
(a) an individual basis,
(b) a sub-consolidated basis, or
(c) a consolidated basis.
Step 2: deriving a framework buffer rate from the FPC framework
The PRA must derive a buffer rate from the FPC framework for the relevant O-SII (“a framework buffer rate”) by—
(a) applying the methodology of the FPC framework to obtain a score for the relevant O-SII, and
(b) ascertaining to what buffer rate the score corresponds under the FPC framework.
Step 3: setting a buffer rate for a relevant O-SII based on supervisory judgment
The PRA may, if it makes a supervisory judgment that it is appropriate to do so—
(a) set a buffer rate for a relevant O-SII, even if it has derived a framework buffer rate for the institution of 0% under Step 2,
(b) set a buffer rate for a relevant O-SII which is different to the framework buffer rate derived for the institution under Step 2, or
(c) set no buffer rate for a relevant O-SII, even if it has derived a framework buffer rate for the institution of other than 0% under Step 2.
Step 4: setting a buffer rate for relevant O-SIIs based on framework buffer rate
Unless the PRA exercises the discretion in Step 3—
(a) where the PRA derives a framework buffer rate under Step 2 of 0% for the relevant O-SII, the PRA may not set a buffer rate for the institution, and
(b) where the PRA derives a framework buffer rate under Step 2 other than 0% for the relevant O-SII, the PRA must set the rate so derived as the buffer rate for the institution.
(3) Where the PRA sets a buffer rate under paragraph (a) or (b) of Step 3 of this regulation, the rate must be 1%, 1.5%, 2%, 2.5% or 3%.

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Source: https://www.legislation.gov.uk/uksi/2025/653/regulation/18 (the official version)
Page: https://openlegislation.uk/capital-buffers-and-macro-prudential-measures-regulations-2025/regulation-18
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.