Prudential Regulation Authority Rulebook

5.1

The PRA may grant permissions under this Article where the following conditions are met:

1. (i) there are reasons to expect that the liability or committed credit or liquidity facility received by the institution constitutes a more stable source of funding, or that the asset or committed credit or liquidity facility granted by the institution requires less stable funding over the one-year horizon of the net stable funding ratio than the same liability, asset, or committed credit or liquidity facility granted by other counterparties; and
2. (ii) where the firm applies on the basis of the counterparty being another subsidiary of the same parent, the firm and the other relevant subsidiary are either:
   1. (a) both defined as ‘ring-fenced bodies’ or the subsidiaries or parents of ring-fenced bodies under FSMA, s142A; or
   2. (b) both not defined as ‘ring-fenced bodies’ or the subsidiaries of ring-fenced bodies under FSMA.