Prudential regulation

Who are we

As part of the Bank of England, we are responsible for the prudential regulation and supervision of around 1,500 banks, building societies, credit unions, insurers and major investment firms.

Our rules require financial firms to maintain sufficient capital and have adequate risk controls in place. Close supervision of firms ensures that we have a comprehensive overview of their activities so that we can step in if they are not being run in a safe and sound way or, in the case of insurers, if they are not protecting policyholders adequately. 

Find out more about what the PRA does

Latest news and publications

16 November 2020: As announced at the Green Horizon Summit on Monday 9 and Tuesday 10 November, HM Treasury and the Government-Regulator TCFD Taskforce have published two climate-related publications: 

• ‘Interim Report and Roadmap for implementing the recommendations of the Taskforce on Climate-related Financial Disclosures’, published on Monday 9 November 2020.
• ‘The Bank’s joint statement in support of the IFRS Foundation’s consultation on sustainability reporting’, published on Tuesday 10 November 2020.

Separately on Monday 16 November 2020, the PRA published a ‘Response to the general insurance industry – A framework for assessing financial impacts of physical climate change’. 

9 November 2020: We published an updated statement on Covid guidance to replace previous guidance for PRA-regulated firms ‘Statement by the PRA on key financial workers who are critical to the Covid-19 response’, in light of updates from UK Government.

28 October 2020: The Bank of England (the Bank) and the Prudential Regulation Authority (PRA) are consulting on a package of proposals relating to resolution policy. 

The PRA published the following Consultation Papers (CPs):

• Consultation Paper (CP) 18/20 ‘Bank Recovery and Resolution Directive II’. This CP is relevant to BRRD undertakings to which the Contractual Recognition of Bail-in and Stay in Resolution Parts of the PRA Rulebook apply. 
• CP19/20 ‘Resolution assessments: Amendments to reporting and disclosure dates’. This CP is relevant to UK banks and building societies with £50 billion or more in retail deposits on an individual or consolidated basis, as at the date of their most recent annual accounts.
• CP20/20 'Operational continuity in resolution: Updates to the policy'. This CP is relevant to PRA-authorised UK banks, building societies, and PRA-designated UK investment firms currently in scope of, or likely to come into scope of, the Operational Continuity Part of the PRA Rulebook.

The Bank published the CP ‘Updates to the Bank of England’s approach to assessing resolvability’. This is related to CP19/20 and CP20/20, and is relevant to firms for which:(i) the Bank, as home resolution authority, has notified that their preferred resolution strategy is bail-in or partial-transfer; or (ii) the Bank has notified as host resolution authority, that they are a ‘material subsidiary’ of an overseas-based banking group for the purposes of setting internal minimum requirement for own funds and eligible liabilities (MREL).

CP18/20 closes on Monday 30 November 2020. CP19/20, CP20/20, and the Bank CP close on Sunday 31 January 2021. 

PRA publications

Consultations papers, policy statements, supervisory statements and statements of policy can be viewed individually by following the links below. Policy statements are published on the same page as the accompanying consultation paper. 

• Consultation papers and Policy statements
• Supervisory statements
• Statements of policy
• Prudential regulation news releases and speeches
• Annual Report and Business Plan
• Statements and reports
• Letters
• PRA Regulatory Digest