8.1. This chapter provides feedback to responses to Chapter 2 of consultation paper (CP) 16/22 - Implementation of the Basel 3.1 standards, which proposed that firms meeting the Small Domestic Deposit Taker (SDDT) criteria would not have to apply the Basel 3.1 standards set out in the consultation paper [CP16/22 also proposed a revised version of the SDDT criteria consulted on in CP5/22 - The Strong and Simple Framework: a definition of a Simpler-regime Firm, to determine the firms that would be eligible to choose (via a modification by consent) to be subject to the Transitional Capital Regime. The final SDDT criteria are detailed in PS15/23.]. On account of this, the Prudential Regulation Authority (PRA) proposed to introduce a Transitional Capital Regime (TCR) that would allow SDDTs to remain subject to existing Capital Requirements Regulation (CRR) [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, which is referred to as the 'CRR' in this PS.] provisions until the permanent risk-based capital framework for SDDTs (SDDT capital rules) is implemented [The one exception is rules related to Internal Ratings-based (IRB) Approach. In line with the proposals in CP16/22, the PRA intends to incorporate the Basel 3.1 IRB rules for the ICR.]. This chapter also sets out the PRA's near-final policy on the TCR following the consultation.