1.19 The near-final policy and rules set out in this near-final PS have been developed by the PRA in accordance with its statutory objectives and informed by the regulatory principles and the matters to which it must have regard when making policy and rules as set out in FSMA 2000. In CP16/22, the PRA set out details of the applicable accountability framework in Appendix 6 - PRA statutory obligations and provided its assessment of relevant considerations separately in each chapter. The PRA has provided a summary of its updated overall assessment below, having taken into account consultation responses. More detailed updated explanations are included in the relevant chapters of this near-final PS, where the PRA has made changes to the draft policy.

1.20 The PRA considers that the near-final policy and rules in this near-final PS will advance its primary objective to promote the safety and soundness of the firms it regulates. They address shortcomings in the RWA framework that were revealed by the global financial crisis, including inadequate Pillar 1 capital requirements in some areas, and a 'worrying degree of variability' in the calculation of risk weights noted by the Basel Committee on Banking Supervision (BCBS) in December 2017 [BCBS - Basel III: Finalising post-crisis reforms.]. Addressing these shortcomings is important to underpin confidence that firms are adequately capitalised given the risks to which they are exposed, which in turn supports financial stability. In particular: