PRA’s Annual Report and Accounts for 2016/2017 outlines how it delivered this year’s business aims, including:
- Continuing to develop and implement the forward‑looking, judgement‑based supervisory regime;
- Supporting the Bank in delivering its financial stability and monetary policy objectives;
- Implementing changes to domestic, European and international regulation;
- Continuing to devise and influence the domestic and international policy agenda; and
- Ensuring the PRA has the right people, infrastructure and governance to deliver its strategy.
Looking forward to 2017/18, PRA will:
- Continue to implement structural reform (ring-fencing) for UK banks;
- Ensure that the approach to insurance supervision aligns with the requirements of Solvency II, transactions are executed as BAU activity, and risks arising are identified as firms adapt to Solvency II;
- Prepare to implement the UK financial regulatory framework following Brexit
- Maintain a strong voice and contribute to international standards for banks and insurers: delivering requirements for international insurance standards and finalising the Basel banking reforms;
- Progress work to facilitate competition, including reforms to Pillar 2A and standardised risk-weights for low loan to value (LTV) mortgages;
- Establish operational resilience in the supervisory framework in 2017;
- Ensure PRA policy and supervision effectively support the Bank’s resolution objectives;
- Understand the risks and vulnerabilities posed by credit risk and asset quality.
- Understand the impact of ‘low for long’ on banks and insurers;
- Deliver and embed the governance regime for banks and insurers including the principle of proportionality; and
- Deliver a strong and efficient operational platform involving the right resources, technology, data analytics and tools, people and governance in order to deliver the PRA’s objectives effectively.