You wouldn’t give money to someone you didn’t trust, would you? Making a deposit into a bank or building society account is like giving your trust to that organisation. You trust that it will look after your money and, when you want to access that money again, it will be there. Also, if you buy a policy with an insurer, you would expect it to pay out when you need it.
Banks, as well as other financial services such as insurers and building societies, are all businesses. Their success is measured in the same way as other businesses, including the profit they make.
However, these are the companies (firms) that hold your money for you so that you can make payments and control your financial life. There is a responsibility that comes with that. That’s where the PRA comes in. As part of the Bank of England it is our role to ensure that firms act safely and reduce the chance of getting into financial difficulty.
