5.1 Chapter 5 in DP1/21 discussed possible measures to lower barriers to growth faced by non-systemic firms that would not be operating under the simpler regime. It highlighted actions that might be taken as the PRA built out the strong and simple framework to cover a wider set of non-systemic firms and the trade-offs involved.
Number of layers
5.2 DP1/21 outlined considerations the PRA would need to make when choosing the number of layers in the strong and simple framework. It asked:
Q27: Would it be preferable to have few or many layers in a strong and simple framework for non-systemic banks and building societies?
5.3 The responses are summarised in Chart 12. A majority of respondents that offered a view supported fewer layers (eg no more than two or three). Some respondents preferred more layers and some suggested there should be a layer specifically for the very smallest firms (ie underneath a simpler regime).
5.4 Some respondents emphasised the importance of designing the framewo
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