Review of capital regime for UK credit unions
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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