Bank Of England: Record Of FPC Meeting Held On 20 September 2016

At its meeting on 20 September, the Financial Policy Committee (FPC):

Maintained the UK countercyclical capital buffer (CCyB) rate at 0%, and reaffirmed that it expected to maintain a UK CCyB rate at 0% until at least June 2017, absent any material change in the outlook. It continued to support the clear supervisory expectation of the Board of the Prudential Regulation Authority (PRA) that firms should not increase dividends and other distributions as a result of the UK CCyB rate being maintained at 0%.
Considered that the two Recommendations it had made to the PRA in July 2016 had been implemented:
- Where existing PRA supervisory buffers of PRA-regulated firms reflect risks that would be captured by a UK countercyclical capital buffer rate, to reduce those buffers, as far as possible and as soon as practicable, by an amount of capital which is equivalent to the effect of a UK countercyclical capital buffer rate of 0.5%;
- When applying its rules on the leverage ratio, to consider allowing firms to exclude from the calculation of the total exposure measure those assets constituting claims on central banks where they are matched by deposits accepted by the firm that are denominated in the same currency and of identical or longer maturity.