Prudential Regulation Authority Rulebook

1.1

This supervisory statement (SS) applies to Capital Requirements Regulation (CRR) firms (hereafter, ‘firms’) and CRR consolidation entities on an individual, consolidated, and where relevant, sub-consolidated basis. The purpose of this SS is to give guidance on the UK leverage ratio capital requirements and buffers for firms in scope of the leverage ratio capital requirement, and to set out the Prudential Regulatory Authority’s (PRA) expectation as to how other firms will manage their risk of excessive leverage. It also provides guidance on the methodology for additional reporting and disclosure of an averaged leverage ratio for firms in scope of the leverage ratio capital requirement. It should be read alongside the Leverage Ratio – Capital Requirements and Buffers, Leverage Ratio (CRR), Disclosure (CRR), Reporting (CRR) and Internal Capital Adequacy Assessment Parts of the PRA Rulebook.