Prudential regulation

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

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.

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:

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

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.
Structural reform, also known as ring-fencing, will separate banks’ retail banking activities from their wholesale and investment banking activities.
We use stress testing to assess the health of the UK banking and insurance systems.
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.
Capital Requirements Directive IV (CRD IV) is an EU legislative package covering prudential rules for banks, building societies and investment firms.
This page was last updated 09 April 2018
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