7.5 Four respondents requested that firms be permitted to use thresholds set in EUR rather than redenominated into GBP. They argued that this would avoid having inconsistent thresholds between the EU and UK rules over time as exchange rates vary.

7.6 The PRA recognises that there may be some small inconsistencies in the long term with EUR thresholds used in EU rules due to exchange rate movements. However, the PRA considers that the potential operational cost of those inconsistencies is outweighed by the benefit to safety and soundness and competition of applying thresholds that are consistent (in GBP-terms) over time and consistent across all PRA-regulated firms.