2.1 Before making any proposed Standards Instruments, the PRA is required by FSMA to have regard to any representations made to it, and to publish an account, in general terms, of those representations and its feedback to them [Sections 138J(5), 138K(4) and 138S(2) of FSMA.].

2.2 The PRA has considered the responses received to the CP. This chapter sets out the PRA's feedback to those responses, and its final decisions. The PRA has structured its feedback into four sections:

• the nature of economic downturns;

• the severity of an economic downturn;

• the duration of an economic downturn; and

• other responses.

The nature of economic downturns

2.3 Section 3 of the draft Standards Instrument provides a list of economic indicators the PRA would consider relevant for identifying an economic downturn. Paragraph 3.1, point (1), lists indicators that the PRA considers relevant for all exposures, such as gross domestic product (GDP), and the unemployment rate. Point (2) of the same paragraph then lists a set of indicators the PRA would consider relevant for specific portfolios, such as exposures to corporates or specialised lending exposures.