5.1 The PRA considers that the SDDT regime is intended for small firms that are not systemically important and are focused on deposit-taking from, and lending to, households and corporates in the UK. The SDDT criteria are designed to reflect the attributes of smaller, less complex firms.

5.2 To ensure the criteria continue to do that, the PRA will monitor the suitability of the SDDT criteria.

5.3 Specifically, the PRA intends to undertake a review of the SDDT criteria no later than the end of 2028. In that review, the PRA would assess whether the criteria still identify the relevant firms (eg it could consider whether structural changes in the banking sector require other criteria in order to identify relevant firms) and whether the calibrations of the thresholds within the criteria still identify the relevant firms (eg whether the thresholds expressed in currency terms need to be adjusted).

5.4 If the conclusion of the review were that changes to the SDDT criteria would advance PRA objectives, any proposed changes would be subject to the normal consultation process [Section 138J of FSMA 2000.].

5.5 If the review led the PRA to propose changes to the size criterion, the PRA would intend that those changes would be reflected in the PRA's approach to firms that are members of foreign groups, with the consultation also covering updates to this SoP.