4.1 The PRA proposed to replicate the scope of application of prudential requirements set out within the CRR for the measures proposed in the CP.

4.2 No responses were received in relation to this proposal. The PRA will therefore publish the policy as proposed.

Net stable funding ratio

4.3 The PRA proposed to apply the NSFR to credit institutions and PRA-designated investment firms (DIFs).

4.4 Seven respondents commented on the potential application of the NSFR to DIFs.

4.5 One respondent supported the application of the NSFR to DIFs, considering that this would ensure a level playing field between DIFs and banks that provide similar products. Three respondents broadly supported the goals of the NSFR, with one respondent noting that the PRA's proposed rules appear broadly prudentially appropriate and proportionate, and another recognising the appropriateness of reducing banks' reliance on short term funding. One respondent also recognised that the experience of the financial crisis required an increased focus on firms' funding profiles.

4.6 Six respondents considered the NSFR and its calibration not to be appropriate for the business activities of a DIF. Two respondents considered that the NSFR appears to have been designed for credit institutions rather than DIFs. One respondent considered that applying the requirements of the NSFR would be a particular challenge for market-making firms.