Prudential regulation

The Bank of England prudentially regulates and supervises financial services firms through the Prudential Regulation Authority (PRA).

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

Latest Covid-19 updates

For our latest Covid-19 updates see Our response to coronavirus (Covid-19): regulatory measures for PRA-regulated firms

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: 

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’

13 November 2020: On Thursday 12 November Sam Woods, Deputy Governor for Prudential Regulation and Chief Executive Officer for the PRA, delivered a speech at Mansion House setting out the intention of the PRA implementing a ‘strong and simple’ regime for regulating small UK banks and building societies. 

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):

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

This page was last updated 17 November 2020

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