This statement is relevant to PRA-authorised firms to which the Capital Requirements Regulation (CRR) applies. It sets out the Prudential Regulation Authority’s (PRA’s) expectations on the quality of regulatory capital resources that firms are required to hold under the CRR. 
      
    
    
      
	This statement complements the requirements set out in Part 2 of the CRR, in the Definition of Capital Part of the PRA  Rulebook and the high-level expectations on capital as outlined in ‘The PRA’s approach to banking supervision’.
	It builds on the high level expectations on capital set out in the PRA’s approach document to banking supervision and should also be read in conjunction with the Definition of Capital part of the PRA  Handbook.
	The areas covered by this Supervisory Statement include:
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		the quality and composition of capital;
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		Additional Tier 1 triggers;
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		preference;
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		subordination, remedies, events of default and set-off;
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		regulatory capital and subordinated swaps;
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		significant insurance holdings; and
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		Connected Funding of a Capital Nature (CFCN)
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