Incorporation of large exposures requirements from the CRR

11.1 The PRA proposed to transfer the following items into the PRA Rulebook:

(a) the large exposure requirements as set out in Part Four of the CRR; and

(b) Regulation No. 1187/2014 for determining the overall exposures to a client or a group of connected clients in respect of transactions with underling assets.

11.2 The PRA proposed to restate in the PRA Rulebook most of the requirements in the Large Exposures Part of the CRR, but also proposed not to replicate certain discretionary requirements that the PRA has not exercised [Articles 388, 390(8), 390(9), 394(4), 395(1A), 395(6), 400(2) (a)-(b), (d)-(f), and (i)-(k) of the CRR.] and provisions that place requirements on the PRA rather than on firms. The PRA also proposed to implement new Basel III standards on large exposures through amendments to:

• the definition of capital;

• the calculation of exposure values;