PRA consultation on capital regime review for credit unions

Industry News | 25/10/19

The Prudential Regulation Authority (PRA) has published consultation paper CP28/19 Credit unions: Review of the capital regime, in which it sets out its proposed changes to the capital requirements that apply to credit unions. The key changes proposed aim to reduce complexity in the capital regime by removing the relationship between credit union activities and membership size and capital requirements, addressing the risks posed by those factors by other means; and giving greater flexibility to credit unions with total assets over £10m by replacing the current regime with a ‘graduated rate’ approach and removing the 2% capital buffer.