Review of capital regime for UK credit unions
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The Prudential Regulation Authority (PRA) is proposing changes to the capital requirements that apply to credit unions.
For credit unions with more than £10m of total assets, the PRA proposes to provide a greater degree of flexibility and remove barriers to growth by replacing the current regime with a “graduated rate” approach and removing the 2% capital buffer.
The regulator also proposes to reduce complexity in the capital regime by removing the association between credit union activities/membership size and capital requirements and to address the risks posed by these factors by other means.
Stakeholders are to submit feedback by January 24, 2020.
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