This supervisory statement sets out the Prudential Regulation Authority’s (PRA’s) expectations in respect of certain aspects of a firm's application of the standardised approach to credit risk.
This supervisory statement covers elements of the following topics:
- exposures to institutions;
- third country equivalence;
- the monetary threshold for retail exposures;
- Ijara mortgages;
- buy-to-let mortgages;
- exposures in default;
- items associated with particularly high risk; and
- the interim mapping of external credit assessments to credit quality steps.