Our response to Coronavirus (Covid-19): regulatory measures for PRA firms

We are putting in place measures to support firms regulated by the Prudential Regulation Authority (PRA) during this difficult time.

We have taken a number of actions to help PRA-regulated firms deal with Covid-19. These regulatory actions are designed to maintain financial stability, ensure the safety and soundness of firms and make sure policyholders are protected.

We are working closely with regulated firms, the Financial Conduct Authority, HM Treasury, the Government and other financial regulators to co-ordinate our response in the most effective way.

Firms can find details of our regulatory response to support them below.

Details of any further regulatory actions to support firms will be published on this page.

Latest news and updates

22 May 2020: We published a statement on the application of regulatory capital and IFRS 9 requirements to payment holidays granted or extended to address the challenges of Covid-19.

7 May 2020: We published a statement on temporarily setting Pillar 2A requirements as a nominal amount, to alleviate unwarranted pressure on firms.

7 May 2020: The Bank of England and PRA published a statement announcing amendments to resolution measures aimed at alleviating operational burdens on PRA-regulated firms in response to the Covid-19 outbreak.

4 May 2020: We published a statement on credit risk mitigation eligibility and leverage ratio treatment of loans under the Bounce Back Loan Scheme (BBLS). We also published a ‘Modification by consent of the exclusion of loans under the BBLS from the calculation from the total exposure measure of the Leverage Ratio’, available on the Waivers and modification of rules page.

27 April 2020: We published a ‘Statement on the regulatory treatment of the UK Coronavirus Business Interruption Loan Scheme (CBILS) and the UK Coronavirus Large Business Interruption Loan Scheme (CLBILS)’ in response to HM Treasury’s announced changes to the schemes.

24 April 2020: We published an update to the ‘Statement by the PRA on key financial workers who are critical to the Covid-19 response’. 

23 April 2020: We have published a follow-up note for PRA-regulated insurers on the letter from Sam Wood’s ‘Covid-19: IFRS 9, capital requirements and loan covenants’, clarifying the PRA’s position on the treatment of loans.

20 April 2020: The PRA published a set of Q&A's to answer some commonly asked questions on the usability of liquidity and capital buffers and their operation as set out in PRA rules and guidelines and in response to the Covid-19 outbreak. The document is relevant to all banks to which CRD IV applies. 

9 April 2020: With support from the Financial Policy Committee, we published a statement on the ‘PRA decision on Systemic Risk Buffer rates’, in response to the Covid-19 outbreak. We also published a ‘Modification by consent of the calculation of the total exposure measure of the Leverage Ratio’ available on the Waivers and modification of rules page.

9 April 2020: We updated the ‘Covid-19 regulatory reporting and disclosure amendments’ statement to reflect the deadline extension of two additional returns ‘Supervisory benchmarking exercise – credit risk’ and ‘REP005 – High earners report’.

8 April 2020: We have sent a letter to all PRA-regulated credit unions inviting them to consent to a modification of Rule 3.11 of the Credit Unions Part of the PRA Rulebook in accordance with the direction available on the Waivers and modification of rules page

3 April 2020: Joint with the FCA, we published a statement on the ‘Senior Managers and Certification Regime and Coronavirus: Our expectations of firms’  relevant to dual-regulated firms.

2 April 2020: On 31 March 2020 the European Banking Authority published a ‘statement on supervisory reporting and Pillar 3 disclosures in light of Covid-19’  Please read the PRA statement ‘Covid-19 regulatory reporting and disclosure amendment’ for more information. The Bank also published a notice with guidance for firms on statistical reporting

2 April 2020: We published a joint PRA and HMT statement on the delay to implementation of the Basel 3.1 standards.

31 March 2020: We published a letter from Sam Woods to UK deposit-takers on ‘Dividend payments, share buybacks and cash bonuses’, a PRA statement on ‘Deposit-takers’ approach to dividend payments, share buybacks and cash bonuses’, and a letter from Sam Woods to insurers on ‘Distribution of profits’. 

30 March 2020: We published updates on ‘VAR Back-Testing Exceptions Temporary Approach’ and ‘Exposure value for Internal Models Method Counterparty Credit Risk’.

26 March 2020: We published a letter from Sam Woods to Chief Executive Officers of UK Banks on ‘Covid-19: IFRS 9, capital requirements and loan covenants’. We also published a Joint statement by the FCA, FRC and PRA.

24 March 2020: On 23 March 2020, the UK Government issued guidance regarding which businesses should remain closed as part of further social distancing measures. Please read the ‘Statement by the PRA on bank, building society and credit union branches remaining open following updated Covid-19 guidance’ for more information.

20 March 2020: On 19 March 2020, the UK Government published guidance for schools, colleagues and local authorities on maintaining educational provision. Please read the 'Statement by the PRA on key financial workers who are critical to the Covid-19 response' for more information.

Latest PRA publications

This page was last updated 22 May 2020
Was this page useful?
Add your details...