2.1 In CP14/21, the FPC proposed to direct the PRA to implement a UK leverage ratio framework that (see Appendix 3 of CP14/21 for the full text of the proposed FPC direction and recommendation):
• maintains: the minimum UK leverage ratio requirement and its calibration; leverage ratio buffers and their calibration (both subject to the PRA's implementation of changes to the leverage exposure measure (LEM), as set out at Chapter 11 of CP14/21); the capital quality requirements; and the exclusion of qualifying central bank claims from the exposure measure, as set out in the FPC's 2015 Policy Statement ['The Financial Policy Committee's powers over leverage ratio tools'.];
• extends the scope of application of the framework to capture: major UK banks, building societies, and PRA-regulated investment firms; UK banks, building societies, and PRA-regulated investment firms with significant non-UK assets; and certain comparable holding companies approved or designated by the PRA;
The PRA s
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