The Bank of England's Prudential Regulation Authority (PRA) has launched a consultation to increase the retail deposits threshold that triggers application of the UK leverage ratio requirement, raising it to GBP 70 billion from GBP 50 billion. Under the current framework, firms with more than GBP 50 billion in retail deposits or GBP 10 billion of non-UK assets must meet a minimum leverage ratio requirement of 3.25% plus buffers, with the thresholds intended to capture major UK banks, building societies and investment firms. The PRA is proposing the GBP 20 billion increase to the retail deposits threshold to reflect nominal GDP growth since 2016 and to give smaller firms more room to grow before entering the leverage regime, while leaving the GBP 10 billion non-UK assets threshold unchanged. The consultation runs from 5 March 2025 to 11.59pm on 5 June 2025.
Bank of England 2025-03-05
Bank of England's Prudential Regulation Authority consults on raising the retail deposits leverage ratio threshold to GBP 70 billion
The Bank of England's Prudential Regulation Authority is consulting on raising the retail deposits threshold for the UK leverage ratio requirement from GBP 50 billion to GBP 70 billion. This adjustment reflects nominal GDP growth since 2016 and aims to allow smaller firms more growth capacity before entering the leverage regime, while the GBP 10 billion non-UK assets threshold remains unchanged.