Top news and publications
- The PRA published two speeches by Sam Woods, Deputy Governor for Prudential Regulation and PRA CEO.
- The PRA published a report from a cross-industry working group
Published on
03 June 2019
News and speeches
‘Scanning the horizon’ – speech by Sam Woods
24 May 2019
In his speech, Sam Woods says we must keep ‘scanning the horizon’ to identify problems in the financial system. There could be other financial crashes, so it’s vital to remain vigilant.
He gives examples of issues the PRA looks for. And he warns that, unless we keep questioning firms and ourselves about worrying developments in the markets, the work we have done to make the financial system safer could be reversed.
‘Stylish regulation’ – speech by Sam Woods
16 May 2019
In his speech, Sam Woods discusses what our system of financial regulation might look like after the UK leaves the EU.
Sam talks about the ‘style’ of regulation we should aim for and explores the differences between EU and UK approaches to implementing regulatory rules.
Statement on Metro Bank
17 May 2019
The PRA welcomes the steps taken on Friday 17 May 2019 by Metro Bank. Metro Bank is profitable and continues to have adequate capital and liquidity to serve its current customer base. It has raised additional capital in order to fund future growth.
‘Model use and misuse’ – speech by David Rule
14 May 2019
In this speech, David Rule, Executive Director of Insurance Supervision, discusses insurance models and the growing importance of model risk management. He describes some recent findings from the PRA’s work to guard against weakening over time of capital requirements calculated from internal models – so-called ‘model drift’.
‘Operational resilience – a progress report’ – speech by Nick Strange
14 May 2019
In his speech, Nick Strange, Director, Supervisory Risk Specialists, looks at one of the Bank of England’s strategic priorities – improving the operational resilience of the UK financial sector. Operational resilience is the ability to prevent, respond and recover from operational disruptions.
Banking publications and updates
PRA110
31 May 2019
On 1 June 2019 there will be one month to go until the implementation of PRA110 on Monday 1 July 2019 and the dual reporting period with FSA047 and FSA048. Firms are advised to continue to familiarise themselves with the policy, template and instructions. For the full update see the ‘Reporting of PRA110’ section.
As part of the PRA’s work on the Pillar 2 liquidity framework, including the introduction of PRA110 reporting by firms from Monday 1 July 2019, the PRA has published Version 1 of the PRA110 liquidity metric monitor tool (PRA110 LMM tool). It is published to assist firms in the same way as the LMM for FSA047 and FSA048. It is for information only and must not be used to submit regulatory returns required by our rules. The PRA110 LMM tool may be updated after the publication of the final policy following Consultation Paper 6/19 ‘Pillar 2 liquidity: Updates to the framework’ if required, to align with an updated PRA110 reporting template.
Systemic Risk Buffer rates for ring-fenced banks and large building societies
1 May 2019
The PRA is required by the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014 as amended by Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) Regulations 2015 (Part 5A) to set Systemic Risk Buffer (SRB) rates for ring-fenced banks (RFBs) and large building societies from Wednesday 1 January 2019 by applying the Financial Policy Committee (FPC)’s framework for the SRB. The PRA has set out its approach to the implementation of the SRB in the Statement of Policy 'The PRA’s approach to the implementation of the systemic risk buffer' (December 2018).
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For further information on CRD IV visit the CRD IV updates page.
For new banks, please see the New Banks Start-up Unit page.
For information on banking regulatory returns and how to report them, visit the Regulatory reporting – banking sector page.
For details of forms used to collect data through the online statistical data application (OSCA), visit the Forms, definitions, and validation page.
Insurance publications and updates
A framework for assessing financial impacts of physical climate change: a practitioner’s aide for the general insurance sector
22 May 2019
With a foreword from David Rule (Executive Director of Insurance Supervision and sponsor of the working group), one-page executive summary, and short introduction, this report has been written by a cross-industry working group to outline a framework for practitioners in the general insurance sector to use to assess the financial impacts of physical climate change.
The working group is keen to get comments and views on the framework. Responses are requested by Friday 22 November 2019.
CP11/19 ‘Solvency II: Maintenance of the transitional measure on technical provisions’
22 May 2019
This consultation paper (CP) sets out the PRA proposals to update Supervisory Statement SS6/16 ‘Maintenance of the ‘transitional measure on technical provisions’ under Solvency II’.
The CP is relevant to UK insurance and reinsurance firms within the scope of Solvency II that have been granted approval to use the transitional measure on technical provisions; the Society of Lloyds; and firms that are considering applying to use this transitional measure.
This consultation closes on Wednesday 21 August 2019.
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For further information on Solvency II visit the Solvency II updates page.
For further information for non-Directive firms visit the non-Directive firms page.
For information on insurance regulatory returns and how to report them, visit the Regulatory reporting – insurance sector page.
PRA open consultations - closing June 2019
- CP4/19 ‘Liquidity risk management for insurers’
- Closing date: 5 June 2019
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- CP5/19 ‘Pillar 2 capital: Updates to the framework’
- Closing date: 13 June 2019
Upcoming prudential regulation communications
Also in the month
20 May 2019
17 May 2019
16 May 2019
15 May 2019
- 'Gender diversity is good for wider diversity and greater inclusion' – speech by Joanna Place
- 'How can the objective of macroprudential policy be operationalised, given the high uncertainty about the state of the financial system?' – speech by Donald Kohn
- 'Financial stability post Brexit: risks from global debt' – speech by Jon Cunliffe
- 'Is all economics local?' – speech by Andy Haldane
7 May 2019
These items are selected from Latest Bank of England news. Readers may also find it useful to refer to the Statistics and Research sections of the website.
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