The Prudential Regulation Authority has published the 2025 Other Systemically Important Institution (O-SII) buffer rates for UK ring-fenced bank (RFB) sub-groups and a large building society, applying the Financial Policy Committee’s updated O-SII buffer framework. The O-SII buffer rates in the publication will apply from 1 January 2027. In line with the updated framework, the PRA set the rates using the average of quarter-end UK leverage exposure measure data over 2024, assessed on a sub-consolidated basis for RFBs and on a consolidated basis for building societies. The PRA set RFB sub-group O-SII buffer rates (as a percentage of risk-weighted assets) at 2.0% for Lloyds Banking Group, 1.5% for NatWest, and 1.0% for HSBC, Barclays and Santander UK, and set a 1.0% rate for Nationwide Building Society. The buffers apply to all exposures, including exposures located anywhere in the world; for RFBs, where the group is not subject to a global systemically important bank buffer or the group G-SIB buffer rate is lower than the O-SII buffer rate, this results in an increase in both the group PRA buffer and the Leverage Ratio Group Add-on.
Prudential Regulation Authority 2025-11-28
Prudential Regulation Authority sets 2025 O-SII buffer rates for ring-fenced bank sub-groups and Nationwide Building Society from 1 January 2027
The Prudential Regulation Authority has set 2025 Other Systemically Important Institution buffer rates for UK ring-fenced bank sub-groups and Nationwide Building Society under the Financial Policy Committee’s updated framework, effective 1 January 2027. Based on 2024 average UK leverage exposure data, the rates are 2.0% of risk-weighted assets for Lloyds Banking Group, 1.5% for NatWest, and 1.0% for HSBC, Barclays, Santander UK and Nationwide, applying to all global exposures. For ring-fenced banks where the group is not subject to a global systemically important bank buffer, or where that buffer is lower than the O-SII buffer, the decision also increases the group PRA buffer and the Leverage Ratio Group Add-on.