Other systemically important institutions (O-SII) buffer rates for ring-fenced banks and large building societies

The Prudential Regulation Authority (PRA) has published a press statement to inform of the new capital buffer rates for institutions deemed to be „other systemically important institutions (O-SIIs)“ following a corresponding designation by the PRA (please see EventID 23956 in this context). The rates are illustrated in the tables below:
Capital Buffer Requirement per Sub-Group and included Ring-Fenced Banks (RFBs) designated as O-SIIs beginning January 1, 2025

Capital Buffer Requirement of Building Societies designated as O-SIIs beginning January 1, 2025

—
The PRA notes that it is required to establish the O-SII buffer rates for ring-fenced banks and large building societies by using the Financial Policy Committee (FPC)’s O-SII buffer framework. Following the revision of this framework in November 2022, the PRA determined O-SII buffer rates using UK leverage exposure measure data as of the end of 2022. The assessment was conducted on a sub-consolidated basis for RFBs and on a consolidated basis for building societies.
Also, the PRA states that in cases where a ring-fenced bank’s group doesn’t have a global systemically important institution (G-SII) buffer assigned or has a lower G-SII buffer rate compared to the O-SII buffer rate, there will be an increase in both the group PRA buffer and the Leverage Ratio Group Add-on to ensure adequate capital within the consolidated group.