This section delineates key regulatory definitions under the prudential framework governed by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). It clarifies terms such as ‘Additional Tier 1 instruments’, ‘bail-in liabilities’, and ‘critical functions’, highlighting their significance in maintaining financial stability in the UK.

The provisions further outline the parameters for liabilities and capital instruments, emphasizing the role of ‘eligible liabilities’ and the criteria for extraordinary public financial support. Such definitions underpin the regulatory landscape aimed at safeguarding the banking sector's integrity and facilitating effective resolution strategies.