[See Appendix 7 for the aggregated cost benefit analysis, which should be read in conjunction with the individual policy chapters.]

1.38 In developing the proposals set out in this CP, the PRA has considered a range of factors that contribute to the cost benefit analysis (CBA) underpinning the proposals. The PRA has assessed the costs and benefits of individual policies 'bottom up' (as set out in each policy chapter) and considered the aggregate impact 'top down'. The CBA is forward-looking and; therefore, based on uncertainties and assumptions.

1.39 As described above, after the global financial crisis, the BCBS identified three key factors from the global financial crisis to be addressed with reforms to banking prudential policy. These factors were:

- more capital in the system relative to the underlying risks;

- better quality capital in terms of loss absorption; and

- more accurate risk capture and measurement.