April 2024
The PRA's latest Business Planopens in a new tab, covering 2024/25, was published on 11 April. The programme of work is intended to maintain the resilience of the UK's banking and insurance sectors and deliver against the same four strategic priorities as last year. The key areas of focus, as expected, are financial and operational resilience, enforcement policies, and diversity and inclusion. Emerging risks called out include the financial risks of climate change, the impacts of artificial intelligence and machine learning, and digital money and innovation.
There is nothing inherently new or surprising in the Business Plan for firms as it follows relatively soon after the 2024 supervisory priority letters for international banksopens in a new tab, UK deposit takersopens in a new tab and insurersopens in a new tab. However, it is interesting to note the PRA's ongoing concerns about the potential impacts of NBFIs on financial stability and its continuing ambition to become a more dynamic and responsive regulator.
Competitiveness and growth
This will be the first full year in which the PRA operates under the Financial Services and Markets Act (FSMA 2023), which expanded its rulemaking responsibilities and gave it a new secondary growth and competitiveness objective (the SGCO) in the UK. A significant portion of the plan considers how the PRA will balance the SGCO with its primary commitments to safety and soundness of the banking and insurance sectors.
The following key initiatives underpin the PRA's work to promote UK competitiveness and growth:
Strategic Priorities
The PRA's four strategic priorities (SPs) are to:
- Maintain and build on the safety and soundness of the banking and insurance sectors and ensure continuing resilience.
- Be at the forefront of identifying new and emerging risks, and developing international policy.
- Support competitive and dynamic markets, alongside facilitating international competitiveness and growth, in the sectors that it regulates.
- Run an inclusive, efficient, and modern regulator within the central bank.
SP1 — Maintain and build on the safety and soundness of the banking and insurance sectors and ensure continuing resilience.
SP2 — Be at the forefront of identifying new and emerging risks, and developing international policy
SP3 — Support competitive and dynamic markets, alongside facilitating international competitiveness and growth (in the sectors that it regulates)
Our people
- Michelle Adcock
- Alisa Dolgova
- Radhika Bains