Updated 5 December 2023

This Statement of Policy (SoP) was updated following PS15/23 – The Strong and Simple Framework: Liquidity and Disclosure requirements for Simpler-regime Firms, and takes effect from 1 July 2024.

Statement of policy – Pillar 2 liquidity – December 2023 (PDF)

Update 17 June 2019

This Statement of Policy (SoP) was updated following PS13/19 ‘Pillar 2 liquidity: Updates to the framework’, and takes effect from Monday 1 July 2019.

Statement of Policy – June 2019 (pdf)

12 October 2018: The PRA confirms that it is using its new individual risk methodologies as set out in Statement of Policy ‘Pillar 2 liquidity’ in liquidity reviews. They are being applied at the current glide path factor.

We have previously stated our intention to set out proposals on the overall calibration of the liquidity framework in 2018. However, we have taken the decision to postpone finalisation of our proposals in order to conduct further analysis on the appropriate level of liquidity guidance. This includes the potential for some recognition in the Pillar 2 liquidity framework of the ability to draw on Bank of England liquidity facilities, where firms have access arrangements and appropriate collateral in place

Published 23 February 2018

This Statement of Policy was published as part of PS2/18 'Pillar 2 liquidity'