Company: HBCYF
Filing Date: 2025-06-02
Form Type: 424B5
Source: 0001193125-25-132352
Chunk: 41

Company: HSBC HOLDINGS PLC
Filing Date: 2025-06-02
Form: 424B5
Chunk 41
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 imposed as a
macro-prudential tool available to the Bank of England’s Financial Policy Committee as a means to temporarily increase firms’ capital requirements as a result of exposure to specific sectors. Under
the Financial Holding Companies (Approval etc.) and Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) (EU Exit) Regulations 2020 (the “UK CRD V Regulations”), the PRA has the power to set sectoral capital
requirements via a systemic risk buffer (“SRB”). In its policy statement PS26/20 (“PS26/20”) published on December 9, 2020, the PRA confirmed that it would not introduce such an SRB at this time. However, the PRA may consult
on introducing one in future should that be necessary and appropriate. If an SRB were to be imposed in the future, it would likely form part of the combined buffer.

The PRA has also imposed requirements in relation to minimum leverage ratios pursuant to which we are required to meet (i) a minimum
leverage ratio requirement set at 3.25% (calculated, in accordance with the PRA Rulebook, by dividing a firm’s Tier 1 capital by its total exposure measure) (the “PRA Leverage Ratio”), (ii) an additional leverage ratio buffer
that is calibrated at 35% of the G-SII buffer (“ALRB”) and (iii) a countercyclical leverage ratio buffer that is calibrated at 35% of the CCyB (“CCyLB”). At least 75% of the Tier 1
capital required to meet the PRA Leverage Ratio must consist of common equity Tier 1 capital (with the remaining to be met with additional Tier 1 capital), while the ALRB and CCyLB must be met entirely with common equity Tier 1 capital (and the
common equity Tier 1 capital used for the purposes of the PRA Leverage Ratio must not be included for the purposes of the ALRB and CCyLB).

Under Rule 4.3 of Chapter 4 of the “CRR Firms – Capital Buffers” Part of the PRA Rulebook (or, if applicable, Rule 6.2(2) of
section 6 of the PRA’s Capital Buffers and Pillar 2A Model Requirements Voluntary Requirement (“VREQ”) or any succeeding provision(s) amending or replacing such rule), if a relevant firm fails to meet the combined buffer