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 updates

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

23 February 2021: We published a letter from the PRA and FCA ‘Transforming data collection – an update on progress and plans for 2021’.

12 February 2021: We published CP5/21 ‘Implementation of Basel standards’. This CP is relevant to banks, building societies, PRA-designated investment firms, and PRA-approved or -designated financial or mixed financial holding companies (firms). This consultation closes on Monday 3 May 2021.

9 February 2021: We published ‘PRA statement on supervisory benchmarking exercise relating to capital internal models’ addressing the 2021 supervisory benchmarking exercise for capital internal models. This statement is relevant to credit institutions in scope of the reporting requirements.

4 February 2021: We published a letter to chief executive officers of PRA authorised firms from Sam Woods, ‘Feedback: Operational readiness for a zero or negative Bank Rate’. Following our information request dated 12 October 2020 to understand firms’ operational readiness to implement a zero or negative Bank Rate, we are providing feedback to firms; and as highlighted in the February 2021 minutes of the Monetary Policy Committee (MPC), this letter sets out the timeframe for PRA authorised firms to develop tactical solutions to implement a negative Bank Rate. This letter is not indicative that the MPC will employ a zero or negative policy rate.

22 January 2021: Jointly with the FCA we published CP4/21 ‘Financial Services Compensation Scheme – Management Expenses Levy Limit 2021/22’. This CP is relevant to all FCA and PRA authorised firms. This consultation closes on Friday 19 February 2021. Please send any comments on the proposed MELL using the online response form on the FCA’s website Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window

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

Subject to any transitional relief, PRA supervisory statements and PRA statements of policy applicable before 11pm Thursday 31 December 2020 should be read in conjunction with Supervisory Statement (SS) 1/19 which sets out how the PRA expects firms to interpret EU-based references in non-binding PRA regulatory and supervisory materials after the UK’s withdrawal from the EU and the end of the transition period.

This page was last updated 23 February 2021

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