The PRA is consulting on proposals regarding its approach to supervising the UK activities of PRA-authorised banks and designated investment firms that are headquartered outside of the UK. This includes those firms operating in the UK through a branch.
The proposals aim to provide clarity to international banks and to explain how the PRA would assess such firms against its threshold conditions, particularly the condition relating to the effective supervision of firms.
Explaining the background to the consultation, David Bailey explained there is an increase in interest in the UK from international banks, and PRA wanted to set out a holistic approach to how it tackles their supervision. He said 66 banks are in the TPR. As part of PRA’s “responsible openness”, he said it is important for it to articulate that it is open to cross-border business, but only if appropriately controlled and governed. He spoke specifically on information sharing, governance, and booking models.
The consultation closes on 11 April 2021.