1.1 This statement of policy (SoP) sets out the Prudential Regulation Authority's (PRA) approach to operating the criteria for being eligible for the Interim Capital Regime (ICR). It covers:

• how UK banks and building societies ('firms') that meet the Small Domestic Deposit Taker (SDDT) criteria and CRR consolidation entities that meet the SDDT consolidation criteria can access the ICR;

• how firms and CRR consolidation entities that are members of groups based outside of the UK could access the ICR;

• how firms and consolidation entities will be treated in the case of a merger, acquisition, a disposal of entities or activities, or similar circumstances; and

• how firms that cease to meet the SDDT criteria, and consolidation entities that cease to meet the SDDT consolidation criteria, will transition between the ICR and the Basel 3.1 standards (as implemented by the PRA).