Purpose and objective of the PRA buffer

9.1 The PRA buffer (also referred to as Pillar 2B) is an amount of capital firms should maintain in addition to their total capital requirement [Total capital requirements is the sum of Pillar 1 capital requirements plus Pillar 2A capital requirements.] (TCR) and the combined buffer. The PRA buffer absorbs losses that may arise under a severe stress scenario, while avoiding duplication with the combined buffers. Together the PRA buffer, the combined buffer [The combined buffer comprises the Capital Conservation Buffer (CCoB), the Countercyclical Buffer (CCyB), the buffer for global and other systemically important institutions (G-SIIs and O-SIIs) and (for ring-fenced banks and the largest building societies) the Systemic Risk Buffer (SRB).] and the TCR make up the PRA’s capital framework as illustrated by the capital stack in Figure 2.