Regulation 5 Countercyclical capital buffer rate

(1)

The FPC must assess and set a buffer rate for the United Kingdom in accordance with this regulation.

(2)

The buffer rate must be assessed and set for the purpose of enabling UK institutions to calculate their institution-specific countercyclical capital buffers.

(3)

The buffer rate must be assessed and set at least on a quarterly basis, taking into account any variables that the FPC considers relevant for addressing cyclical systemic risk.

(4)

The buffer rate must be expressed as a percentage of the total risk exposure of UK institutions.

(5)

Total risk exposure must be calculated in accordance with Article 92 (own funds requirements) of the Capital Requirements Regulation^f1.

(6)

The buffer rate must be—

(a)

set between 0% and 2.5%, except where the matters referred to in paragraph (3) justify a higher rate, and

(b)

an integer multiple of 0.25%.

Annotations

Footnotes

f1: Article 92 was amended by Schedule 4 to the Financial Services Act 2021 (c. 22) and S.I. 2021/1376.