This chapter discusses how the PRA could go about developing and implementing a strong and simple prudential framework for non-systemic banks and building societies in the UK.

6.1 The purpose of this DP is to collect comments on the merits of introducing a strong and simple prudential framework for non-systemic banks and building societies in the UK and on what that framework could look like. The PRA will use those comments to develop proposals for the shape of any future framework. It would then publish those proposals for consultation on the different elements of the framework.

Implementing a simpler regime for small firms

6.2 As explained in Chapter 3, the PRA is considering building the strong and simple framework by starting with the simpler regime for the smallest firms. If the PRA decides to follow that approach, it would consult on proposed prudential rules for defining whether a firm is in scope of the simpler regime (ie the scope criteria) and for the requirements under this regime. Design and implementation is likely to take a number of years to complete.