On 17 April 2026, the Prudential Regulation Authority (PRA) published its 2026/27 Business Plan, which sets out the workplan for each of its strategic priorities and its strategy to advance its objectives. 

Summary

The PRA set out initiatives it will undertake in support of its strategic priorities this year, in particular:

  • Maintain the safety and soundness of the banking and insurance sectors and ensure continuing resilience: The PRA set out that, since 2013, it has delivered extensive prudential reforms underpinned by a supervisory regime focused on core prudential outcomes and strong international collaboration. Further the PRA set out that it intends, during 2026/27, to focus on supervisory work around the implementation of Basel 3.1, Strong and Simple and operational resilience requirements and that it will aim to ensure that firms remain well-capitalised, maintain strong liquidity and stable funding profiles, and have robust operational resilience against cyber risks.
  • Be at the forefront of identifying new and emerging risks, and developing international policy: The PRA highlighted that, during 2026/27, it will continue to identify and monitor emerging risks from geopolitical trends, economic and financial market developments, support responsible AI adoption including through monitoring the evolving use of AI by regulated firms, and scrutinise novel outsourcing arrangements and concentration risks, and that it will continue to support the Basel Committee on Banking Supervision’s (BCBS’s) targeted review of elements of the international standard for the prudential treatment of cryptoasset exposures. Relatedly, the PRA stated that it will also continue to monitor sector-wide resilience, including through the Bank’s second system-wide exploratory scenario, to build a clearer understanding of how private markets behave under severe but plausible stress and simulation exercises, and that it will also maintain both international and bilateral engagement in a range of areas.
  • Support competitive, dynamic and innovative markets, alongside facilitating international competitiveness and growth: The PRA also made clear that it intends to seek to advance its secondary objectives by supporting the ability of UK firms to compete internationally and the UK’s attractiveness as a global financial centre, including that it intends to ensure that its rules remain proportionate and open to innovation. In particular, during 2026/27, it intends to undertake initiatives in support of this, such as the streamlining of regulatory reporting for banks, through the Future Banking Data (FBD) Programme, and that the PRA will also provide tailored support for fast-growing and innovative financial firms through its new Scale-up Unit and support the concierge services for new inbound international firms.
  • Run an inclusive, efficient, and responsive regulator within the central bank: The PRA explained that it has streamlined and accelerated processes to help enable more efficient interactions with firms. During 2026/27, the PRA set out that it will increase its efficiency and productivity and ensure that costs are tightly managed, in line with wider Bank work and in support of investment to tackle technology obsolescence and will also increase its adoption of emerging technology tools to improve its regulatory processes for firm authorisations, the Senior Managers and Certification Regime, internal model permission application and approvals.