(1) The PRA must require an institution to hold own funds in excess of -

(a) the requirements of  Directive 2013/36/EU UK law which implemented Chapter 4 of Title 7 of the capital requirements directive; and

(b) the requirements of the capital requirements regulation and CRR rules relating to risks or elements of risks not covered by Article 1 of the capital requirements regulation or CRR rules;

in the circumstances mentioned in paragraph (2).

(2) The circumstances referred to in paragraph (1) are -

(a) an institution does not meet the requirements set out in Directive 2013/36/EU UK law which implemented Articles 73 and 74 of the capital requirements directive or in Article 393 of the capital requirements regulation;

(b) risks or elements of risks are not covered by the own funds requirements set out in Directive 2013/36/EU UK law which implemented Chapter 4 of Title 7 of the capital requirements directive, the capital requirements regulation or CRR rules;