PRA Regulatory Digest - May 2022

The PRA Regulatory Digest is for people working in the UK financial services industry and highlights key regulatory news and publications delivered for the month.
Published on 01 June 2022

Top news and publications

  • Climate capital – speech by Sam Woods
  • Statement on EBA Guidelines relating to the management of non-performing and forborne exposures
  • PS4/22 – Trading activity wind-down

News and speeches

Four Rs: Creating the conditions for long-term sustainable growth in the life annuity sector – speech by Charlotte Gerken

26 May 2022

Charlotte talks about the long-term sustainable growth of the UK’s life annuity sector. She says that potential changes to regulations for UK insurers can support this.

In her speech, she highlights the importance of:

  • the responsibility of the board
  • risk management
  • resilience
  • regulation

Four Rs: Creating the conditions for long-term sustainable growth in the life annuity sector – speech by Charlotte Gerken

What will operational resilience look like going forward? An overview of the supervisory regulatory position − speech by Duncan Mackinnon

25 May 2022

Duncan sets out where the PRA expects firms to focus as they work towards building operational resilience by March 2025. By this time, firms will need to ensure they are resilient to disruption of their important business services, which if disrupted, could pose a risk to their safety and soundness or in certain cases to the financial stability of the UK.

He does so in the context of the international work the PRA and the Bank are involved in. He also sets out what it means to embed operational resilience.

What will operational resilience look like going forward? An overview of the supervisory regulatory position − speech by Duncan Mackinnon

Climate capital − speech by Sam Woods

24 May 2022

The PRA recently tested the UK’s largest banks and insurers on how prepared they are for financial risks caused by climate change. Sam Woods talks about the results at a webcast hosted by the Global Association of Risk Professionals.

Climate capital − speech by Sam Woods

Cross cutting publications and updates

Statement on EBA Guidelines relating to the management of non-performing and forborne exposures

6 May 2022

This statement sets out the PRA’s approach to the European Banking Authority (EBA) Guidelines (GLs) relating to the management of non-performing exposures (NPEs) and forborne exposures (FBEs).

Statement on EBA Guidelines relating to the management of non-performing and forborne exposures

Banking publications and updates

PS4/22 – Trading activity wind-down

6 May 2022

This policy statement provides feedback to responses to Consultation Paper 20/21 ‘Trading activity wind-down’. It also contains the PRA’s final policy, as follows:

  • Supervisory Statement (SS) 1/22 ‘Trading activity wind-down’;
  • Statement of Policy ‘Trading activity wind-down’; and
  • updated SS9/17 ‘Recovery Planning’.

This PS is relevant to, although may not apply directly, to all PRA-authorised UK banks, their qualifying parent undertakings and PRA-designated investment firms that are engaged in trading activities, and relevant third country branches. This PS is also relevant to policymakers and practitioners that would expect to be involved in a firm’s resolution. It is not relevant to credit unions.

PS4/22 – Trading activity wind-down

Insurance publications and updates

Insurance Stress Test 2022 cover letter to firms

4 May 2022

The PRA sent a letter to the largest PRA-regulated life and general insurers, launching the 2022 Insurance Stress Test exercise.

Insurance Stress Test 2022 cover letter to firms

Your input and views on open PRA consultations and other requests closing in June 2022

CP4/22 - Regulated fees and levies: Rates proposals 2022/23

Closing date: 8 June 2022

DP1/22 – The prudential liquidity framework: Supporting liquid asset usability

Closing date: 30 June 2022

Also in the month

27 May 2022

Climate Financial Risk Forum (CFRF) Session 3 – minutes 27 April 2022

25 May 2022

Fifth edition of the Regulatory Initiatives Grid

23 May 2022

Opening remarks at OeNB monetary policy panel by Andrew Bailey

23 May 2022

An FPC Response - Amendments to the FPC's framework for the O-SII buffer

27 April 2022

Transforming data collection nomination process - 27 April 2022

More information

Bank Underground – a blog for Bank of England staff to share views that challenge – or support – prevailing policy orthodoxies. The views expressed here are those of the authors, and are not necessarily those of the Bank of England or its policy committees.

Bank Overground – the purpose of Bank Overground is to share our internal analysis. Each bite-size post summarises a pieces of analysis that support a policy or operational decision.

KnowledgeBank – from Interest rates and inflation through to bank failures and financial crises, KnowledgeBank uses everyday examples and engaging visuals to bring economics to life.

European and International developments – readers are referred to the following websites:

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