2.1 This chapter provides feedback to responses to Chapter 2 of consultation paper (CP) 16/22 - Implementation of the Basel 3.1 standards, which set out the proposed scope and levels of application for implementing the Basel 3.1 standards. This chapter also sets out the Prudential Regulation Authority's (PRA) near-final policy on scope and levels of application following the consultation.

2.2 In CP16/22, the PRA proposed to:

• replicate the Capital Requirements Regulation (CRR) [In this near-final PS, CRR refers to the onshored and amended UK version of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012.] scope of application for the purposes of implementing the Basel 3.1 standards, except for Interim Capital Regime (ICR) firms and ICR consolidation entities;

• replicate the CRR levels of application for the purposes of implementing the Basel 3.1 standards, except for the output floor (for which different levels of application were proposed in Chapter 9 of CP16/22); and

• replicate the effect of CRR provisions relating to prudential consolidation for the purposes of implementing the Basel 3.1 standards.