Accountability of the Prudential Regulation Authority for delivery of the Secondary Competitiveness and Growth Objective (SCGO)

Introduction

This Appendix sets out the quantitative and qualitative metrics used to monitor the PRA’s performance against its Secondary Competitiveness and Growth Objective (SCGO). Reporting against appropriately selected metrics is an important part of the PRA’s commitment to transparency and accountability for the delivery of its secondary objectives.

The metrics are grouped under the PRA’s three regulatory foundations and capture important aspects of the PRA’s performance under the SCGO. They do not, however, seek to provide a comprehensive account of all of the PRA’s activities or deliverables.

The PRA outlined its approach to accountability in relation to the SCGO in CP27/23 –The Prudential Regulation Authority’s approach to policy, and presented a list of SCGO metrics in Appendix 2 of the CP, including metrics that have been agreed with HM Treasury.^{footnote [1]} This approach takes into account stakeholder feedback received through HMT’s Financial Services Regulation: Measuring Success – Call for Proposals, which was focused on the newly established SCGO.

This is the third year that the PRA has published metrics to monitor its performance against the SCGO. Since publication of the PRA’s second report on competitiveness and growth in June 2025, the PRA has reviewed and enhanced the SCGO reporting metrics framework to ensure it remains targeted, evidence‑based and meaningful. The PRA introduced three new metrics relevant to both the SCGO and the PRA’s operational effectiveness, relating to the administrative burden on firms, support for innovative and fast‑growing firms, and the PRA’s role in facilitating insurers’ investment in the UK economy. In In addition, the PRA retired three metrics for which feedback suggested that they either duplicated information published elsewhere or did not provide meaningful insight.^{footnote [2]}

The tables below summarise the quantitative element of all metrics presented in this Appendix, grouped foundation. The remainder of this Appendix provides a qualitative description of each metric alongside a comparison with last year’s figures (2024/25). Where refinements to methodology or process have led to corrections to previously published figures, these are documented in footnotes.^{footnote [3]}

Foundation 1 – Maintaining trust among domestic and foreign firms in the PRA and UK prudential framework

Metrics under foundation 1 measure whether standards are appropriately calibrated, and their degree of alignment with international standards. Appropriately calibrated standards and alignment with international standards.^{footnote [23]}

Financial Sector Assessment Program (FSAP)

The International Monetary Fund (IMF) delivered its five-yearly FSAP of the UK in February 2022. The PRA responded to the IMF’s assessment in its 2022 Annual Report. The assessment covers a range of sectors and responsibilities falling under the PRA and Bank’s remit, including whether the PRA’s prudential framework is aligned with internationally agreed standards.

The FSAP assessment outlines that the UK regulatory framework meets internationally agreed standards. The assessment recognises that in the banking sector ‘the post Brexit challenge will include streamlining the prudential framework while continuing to meet internationally agreed standards’. The assessment also includes a ‘Detailed assessment of the IAIS Insurance Core Principles (ICPs)’. The outcome of this detailed assessment is that ‘the United Kingdom has a highly developed framework for insurance supervision implemented by highly sophisticated regulators’: 17 ICPs were found to have been observed, six largely observed, and only one partly observed. Also, in the insurance sector, the IMF recommends that, post-Brexit, the UK should not reduce these high standards.

The PRA is implementing, where it deems appropriate, the recommendations made by the IMF as part of its review. Any actions taken by the PRA in response will be assessed as part of the IMF’s next UK FSAP assessment, which is expected in 2026/27.

An update on the PRA’s progress against the recommendations was published by the IMF in July 2025.

Regulatory Consistency Assessment Programme (RCAP) assessment

The BCBS evaluates the consistency and completeness of adopted standards through jurisdictional assessments. A number of RCAP jurisdictional assessments on compliance for the UK were undertaken when the UK was an EU member state (and are therefore out of date). The compliance of the UK regulatory framework with Basel standards for Net Stable Funding Ratio and Large Exposures was assessed as largely compliant in 2025.

In addition to the RCAP assessment, the BCBS carries out periodic monitoring of the timeliness of implementation of Basel standards. The monitoring exercise carried out in Q3 2025 was based on information from member jurisdictions. At that point, the UK had fully adopted 29 out of 29 Basel standards, with work to implement the Basel crypto standards at a similar stage of development to other jurisdictions. The timeliness of UK implementation of Basel standards is consistent with other jurisdictions such as the EU, Canada, Hong Kong, Singapore, and Switzerland.^{footnote [24]}

Banking resilience

The PRA maintains strong prudential standards to help ensure that the UK banking system is well capitalised and has sufficient levels of liquidity to withstand periods of stress. The resilience of the UK banking sector is a key component of the trust that domestic and foreign firms have in the PRA and UK prudential framework.

The tables below report information on banking resilience sourced from the published Records of FPC meetings (FPC Records), Financial Stability Reports (FSRs) and other relevant FPC publications like The countercyclical capital buffer (CCyB) indicators. The FPC Records and FSRs set out the Financial Policy Committee’s (FPC) view on the resilience of the UK financial system.

In March 2026, the FPC assessed that the UK banking system was appropriately capitalised, with an aggregate Common Equity Tier 1 (CET1) capital ratio of 14.7% for major UK banks, as of 2025 Q4. The aggregate for small and medium-sized UK banks was 18.1% as of 2025 Q3. The FPC also assessed that the UK banking system has maintained high levels of liquidity, with the aggregate three-month moving average Liquidity Coverage Ratio (LCR) for major UK banks at 146% as of February 2026. The aggregate for small and medium-sized UK banks was 277% as of September 2025.

Insurance resilience

Similarly, the PRA maintains strong prudential standards in the UK insurance sector to help ensure its resilience and thereby maintain trust in the PRA and UK prudential framework. The PRA aims to ensure that the UK life and non-life insurance sectors are well capitalised, as measured by aggregate Solvency Capital Requirement (SCR) coverage ratios and the percentage of total capital that is Tier 1.

The table below reports information on insurance resilience sourced from the Bank’s and the PRA’s Insurance aggregate data quarterly report. As of 2025 Q4, the average SCR coverage ratios in the life and non-life insurance sectors measured 201.0% and 222.6%, respectively. In the same period, Tier 1 capital formed 92.8% and 88.6% in the life and non-life sectors, respectively.

Prudential framework fostering trust in regulated firms

The PRA runs an annual Firm Feedback survey on the effectiveness and quality of its supervisory framework and approach. The 2025 Firm Feedback survey, which ran from August – September 2025, was sent to 836 PRA-regulated firms - nearly twice the number sent in 2024, including, for the first time, all credit unions. 438 firms responded^{footnote [28]}. The full 2025 survey results are made available on the Bank’s website.^{footnote [29]}

Figure 1 presents the results to question 16: ‘The PRA’s regulatory framework fosters trust in PRA-regulated firms.’

The PRA aims for its regulatory framework to foster trust in the firms it regulates. The results show that 91.6% of respondents either agreed or strongly agreed, that the PRA’s regulatory framework fosters trust in PRA regulated firms. This is down slightly from 93.7% in 2024.

Foundation 2 – Adopting effective regulatory processes and engagement

Metrics under foundation 2 measure PRA operational efficiency, the accessibility and efficiency of the Rulebook, the efficiency of regulatory requests and the effectiveness of stakeholder engagement with firms.

PRA operational efficiency

The PRA Authorisations Performance Report is a quarterly publication of performance metrics on authorisation activity, including data on the average time to determination of outcome. The tables below report information published in the PRA Authorisations Performance Report Q4 2025/26, covering the year-to-date figures for the 2025/26 financial year. The PRA aims to close at least 98% of cases within relevant statutory service standards.

The PRA also monitors the number of determinations, refusals, withdrawals, and entries/exits from the UK market.^{footnote [30]} It would not be sensible to have a 100% aim, as there are some cases which are so complex where it would not be helpful to enforce the statutory timeline. For case types where volumes are very small, this can on occasion result in individual cases over the deadline resulting in a breach of the 98% target. Between 1 March 2025 and 28 February 2026, across all transaction types, 100% of cases were completed on time.

In May 2026, HM Treasury confirmed it intends to legislate to shorten some statutory deadlines – including for new firm authorisations and permissions (from 6 and 12 months to 4 and 10 months respectively) and for senior manager approvals (from 3 to 2 months). The PRA started reporting performance against these new deadlines from March 2026, covering the preceding year.

The PRA is already meeting these deadlines in a majority of cases, but continues to transition towards the new timelines, particularly since some cases covered in this reporting period were assessed earlier in the year with processes designed around the old, longer statutory deadlines. The PRA will continue to enhance the efficiency and speed of processes to operate consistently against the new timelines, and explore other opportunities to streamline authorisations.

Time taken to complete authorisations

Other metrics monitored in the PRA Authorisations Report

PRA FTE, by area:

The table below shows the average actual BAU FTE for each area of the PRA for the 2025/2026 financial year and the 2024/2025 financial year.

The PRA also draws on wider services, for example, from the Technology Directorate and the Legal Directorate, that are shared with other parts of the Bank of England. The Enforcement and Litigation Division within the Legal Directorate leads on the enforcement of PRA’s statutory powers. In the 2025/26 financial year, there were 28 FTEs working on the enforcement of PRA’s statutory powers (compared to 30 in the 2024/25 year).

Accessibility and efficiency of the PRA Rulebook: satisfaction of firms with accessibility of prudential policy, rules, and requirements

The results from the 2025 annual Firm Feedback survey (mentioned previously) also includes questions that are helpful to understand the satisfaction of firms with accessibility of prudential policy, rules, and requirements.

Figure 2 presents the results to question 13: ‘The relevant rules that apply to my firm are accessible and clear.’

The PRA aims to have firms largely satisfied with the accessibility of the PRA Rulebook. The latest results show that:

• 87.6% of respondents either agreed or strongly agreed that the rules that apply to their firm are accessible and clear in 2025. This is up slightly from 87.4% in 2024.

Satisfaction on proportionality, effectiveness, and how regulator actions affect attractiveness of the UK

Figure 3 presents the results to the following survey questions:

• Question 14: ‘The PRA is clear in its reasons for new and revised policy’.
• Question 17: ‘The PRA’s action, effectiveness and approach to proportionality make the UK an attractive place to do business’.

The PRA aims to have firms broadly satisfied with their interactions with the PRA. The results show that:

• 89.2% of respondents either agreed or strongly agreed that the PRA is clear in its reasons for new and revised policy. This is down from 90.4% in 2024.
• 56.4% of respondents either agreed or strongly agreed that the PRA’s actions, effectiveness, and approach to proportionality, make the UK a more attractive place to do business. This is down from 57.3% in 2024.

Efficiency of regulatory requests

The data the PRA requests from firms to support policy development not only facilitates responsive and dynamic policymaking but is also necessary for the PRA to meet its accountability requirements. The PRA aims to modernise regulatory reporting to reduce unnecessary burden on firms by, for example, better aligning data collection with the needs of day-to-day PRA activities; better integrating and streamlining PRA data collection (including by looking to cut underused collections, standardising definitions across collections, and removing duplicative data requests); and ensuring the PRA has the data needed to carry out any future policymaking responsibilities.

The PRA gathers data from firms through the regular reporting requirements set out in the Rulebook and through ad hoc data requests. To provide transparency on the efficiency of these requests, this section reports how much data has been streamlined as part of PRA initiatives and the number of data requests (both regular reporting and ad hoc requests) and the time given to respond across deposit-takers and insurers.^{footnote [34]}

Data streamlined as part of PRA initiatives

On 31 December 2025, PS27/25 – Future Banking Data: Deletion of banking reporting templates became effective, removing 37 templates from the Rulebook (reflected in Table 13), delivering a tangible cost reduction for banks, building societies, and designated investment firms. Looking forward, further changes to reporting are in the pipeline, including revisions under the Strong and Simple framework that will make reporting for smaller firms more proportionate from 1 January 2027. There may be some new reporting in cases where essential data is required (such as Basel 3.1 reporting) but the PRA is envisaging further streamlining and simplification under the Future Banking Data programme. The PRA will work closely with industry to improve the relevance, quality and timeliness of data, in line with the principles set out in DP1/26, supporting its primary objective of financial safety and soundness and delivering cost reductions under the SCGO.

Regular reporting data requests

The tables below present information on data requests to regulated firms prescribed by the PRA Rulebook. They reflect the position of the PRA Rulebook as of 31 December 2025 and the comparison with the year before. The tables below present, for different types of regulated firms, the number of templates requested, and the business days given to respond to requests. The PRA Rulebook sets fixed submission timelines by which each template must be submitted.^{footnote [35]}

Ad hoc data requests

The tables below present information on ad-hoc data requests made by the PRA for prudential purposes to regulated firms in the 2025/26 financial year and the comparison with the year before.^{footnote [43]} These are requests that fall outside of the scope of regular reporting. The tables below present, for different types of regulated firms, the total number of requests, their split by nature of request, and the approximate timings given to respond.

Administrative burden on firms

This year the PRA is introducing a new metric to measure its impact on administrative burdens. Administrative burdens are a subset of operational compliance costs which relate to requirements for firms to demonstrate their compliance with regulation. The PRA considers that administrative burdens include costs relating to regulatory reporting and applications for approval, for example, while compliance costs driven by requirements relating to firms’ financial resources, risk management and governance are “policy costs” not administrative burdens. Policy costs are not included in this metric.^{footnote [49]} The metric reflects the initiatives in the table below. Figures for 2025 include all initiatives considered to have been implemented in 2025.^{footnote [50]} Figures for 2026 and beyond include initiatives which had been consulted on as of 6 February 2026:

Effective stakeholder engagement with firms

Satisfaction of firms based on interactions with the regulators

The results from the 2025 annual Firm Feedback survey (mentioned previously) also include questions that are helpful to understand the satisfaction of firms based on interactions with the regulators.

Figure 4 presents the results to the following survey questions:

• Question 5: ‘My firm has an effective relationship with the PRA’.
• Question 6: ‘My firm has adequate access to the right people at the PRA’.
• Question 7: ‘Communication from PRA supervisors is clear, timely and appropriate for my firm’.

The PRA aims to have firms broadly satisfied with their interactions with the PRA. The results show that:

• 95.0% of respondents either agreed or strongly agreed that their firm has an effective relationship with the PRA. This compares to 98.3% in 2024.
• 90.9% of respondents either agreed or strongly agreed that their firm has adequate access to the right people at the PRA. This compares to 95.4% in 2024.^{footnote [51]}
• 92.2% of respondents either agreed or strongly agreed that communication from PRA supervisors is clear, timely and appropriate for their firm. This compares to 94.4% in 2024.

Foundation 3 – Taking a responsive and responsibly open approach to UK risks and opportunities

Metrics under foundation 3 measure the extent to which the PRA facilitates innovation, and its responsible openness.

Responsible openness

UK banks’ exposure to foreign jurisdictions

One of the pillars of the PRA’s responsibly open approach is hosting cross-border business in the UK, provided that it is resilient and appropriately controlled and governed, and that the PRA has sufficient visibility of and influence over the necessary supervisory outcomes.^{footnote [52]} Responsible openness is essential to the UK’s success because it is one of the world’s most connected financial centres.^{footnote [53]} In a speech in May 2024, Managing Director of the IMF, Kristalina Georgieva, assessed that the UK’s financial stability is a ‘global public good’. This underlines the PRA’s duty to safeguard it.

The Bankstats tables datasets provide detailed breakdowns of data published in the Bank’s statistical releases, alongside other statistics the Bank compiles. Table B1.4 provides datasets on monetary financial institutions’ (excluding central bank) balance sheets. Using these, the PRA calculated the exposure of UK banks’ assets and liabilities to foreign jurisdictions, which can be used as a proxy for openness.