On 31 October 2018 the Prudential Regulation Authority (PRA) published its updated approach to banking supervision (the Approach). The Approach was published alongside a separate PRA approach on insurance supervision.

The Approach sets out how the PRA carries out its role in respect of deposit-takers and designated investment firms and will be updated in line with any significant legislative changes. At the outset, the PRA notes that regarding Brexit, it will not alter its approach to advancing its objective.

The Annex to the Approach contains a full list of the changes made to the Approach from the previous version. 25 changes have been made in total, of particular note are:

• the addition of text regarding the UK’s withdrawal from the EU (page 3);
• the addition of a new section ‘Regulatory principles’ to highlight the PRA’s regard to a number of ‘regulatory principles’ set out in the Financial Services and Markets Act 2000 (page 7);
• updates made to Box 1 ‘Working with other authorities’, including addition of text on domestic supervisory colleges (pages 9-10);
• the addition of new section on operational resilience (page 18);
• updates to the ‘Supervisory activity’ section (pages 28-35); and
• the addition of a new chapter ‘Tailored application of the supervisory approach’, incorporating content from a similar section in the March 2016 approach document, as well as addition of new content on the tailored supervisory approach for ‘Non systemic UK banks and building societies’ and ‘ring-fenced bodies’ (pages 36-39).