Prudential regulation

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.

Find out more about what the PRA does

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

Policy statements

Supervisory statements

Statements of policy

Statements and reports

Letters

Latest prudential regulation news and publications

Update 9 April: We published the PRA Business Plan 2018/19 that sets out the PRA’s strategy and workplan for the coming year, with a foreword from Sam Woods, Deputy Governor for Prudential Regulation and PRA CEO. Alongside this we published:

• Consultation Paper 7/18 ‘Regulated fees and levies: rates proposals 2018/19’
• Letter from the Prudential Regulation Committee to the Chancellor, and its report on ‘The adequacy of PRA resources and the independence of PRA functions’

Update 28 March: Alongside the Bank’s News Release, we published:

• A letter from Sam Woods, Deputy Governor for Prudential Regulation and PRA CEO, on ‘Firms’ preparations for the UK’s withdrawal from the European Union: update following March 2018 European Council’
• Policy Statement 3/18  and Supervisory Statement 1/18 ‘International banks: the Prudential Regulation Authority’s approach to branch authorisation and supervision’
• Policy Statement 4/18  and Supervisory Statement 2/18 ‘International insurers: the Prudential Regulation Authority’s approach to branch authorisation and supervision’ 

Reminder 28 February 2018: Changes to the SONIA benchmark on 23 April 2018

We remind those responsible for market data at PRA-regulated firms that the date and time of the publication of the SONIA benchmark is changing on Monday 23 April 2018. This was confirmed by the Bank of England in a News Release on 16 October 2017.

The strengthening accountability regimes for banking and insurance help to support a change in culture at all levels in firms through a clear identification and allocation of responsibilities to individuals responsible for running them.

Strengthening accountability

 

Structural reform, also known as ring-fencing, will separate banks’ retail banking activities from their wholesale and investment banking activities.

Structural reform

We use stress testing to assess the health of the UK banking and insurance systems.

Stress testing

Solvency II sets out regulatory requirements for insurance firms and groups, covering financial resources, governance and accountability, risk assessment and management, supervision, reporting and public disclosure.

Solvency II

Capital Requirements Directive IV (CRD IV) is an EU legislative package covering prudential rules for banks, building societies and investment firms.

CRD IV