The PRA has published its latest Annual Report and Accounts. The Annual Report includes:
- a review of 2014-15;
- the PRA strategy;
- the PRA Business Plan for 2015-16; and
- the Directors’ Report.
The PRA Business Plan for 2015-16 is structured around five key business aims which are designed to cover the breadth of the PRA’s activities:
- business aim 1: Continue to develop and implement the forward-looking judgement-based regime. As part of this aim the 2015 stress test will be focused on a global shock. Also, the PRA will continue with the implementation of its branch strategy for international banks. Over the coming year the PRA will seek to ensure that the branch strategy is either implemented, or that there is a plan for implementation in key jurisdictions;
- business aim 2: Implement changes to domestic, European and international regulation. This aim includes the PRA continuing to implement bank structural reform. Over the coming year, the PRA will review and progress banks’ ring-fencing plans to ensure both ring-fenced and non-ring-fenced entities have viable and sustainable business models, and banks’ plans are consistent with the objectives of ring-fencing. In addition, over the course of 2015, the PRA will introduce a revised Remuneration Code which will reflect the recommendations of the Parliamentary Commission on Banking Standards following consultation on proposals in 2014;
- business aim 3: Continue to devise and influence the post-financial crisis policy agenda for deposit-takers. Included in this aim is that the PRA is working with the Financial Stability Board and the International Association of Insurance Supervisors to develop a higher loss absorbency standard for global systemically important institutions in areas where this may be appropriate;
- business aim 4: Support the Bank of England (BoE) in delivering its financial stability and monetary policy objectives. This aim includes the PRA working with other parts of the BoE on the Financial Policy Committee’s review of the overall calibration of the capital framework for major UK banks; and
- business aim 5: Ensure the PRA has the right people, infrastructure and governance to deliver its strategy. In particular the PRA will further develop its front-line control framework and assurance framework. This is intended to support and enhance the PRA’s ability to deliver a judgement-led supervisory approach, and provide increased consistency where required.
View PRA Annual Reports and Accounts 2015, 15 June 2015