Prudential regulation rules require financial firms to hold 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.
The Prudential Regulation Authority (PRA) at the Bank of England is responsible for this prudential regulation and supervision of 1,500 banks, building societies, credit unions, insurers and major investment firms.
Update 20 December: Alongside the Bank’s News Release, we published:
- A letter from Sam Woods, Deputy Governor for Prudential Regulation and CEO of the PRA, on ‘Firms’ preparations for the UK’s withdrawal from the European Union: planning assumptions’
- CP29/17 ‘International banks: the Prudential Regulation Authority’s approach to branch authorisation and supervision’
- CP30/17 ‘International insurers: the Prudential Regulation Authority’s approach to branch authorisation and supervision’