What is the Prudential Regulation Authority (PRA)? - Global Relay (2024)
What is the Prudential Regulation Authority?
The Prudential Regulation Authority (PRA) is a U.K. financial services regulatory agency responsible for overseeing major financial institutions.
The prudential regulator was established along with the Financial Conduct Authority (FCA) in 2013, replacing the preceding agency, the Financial Services Authority.
The PRA’s remit is to ensure system-wide stability and soundness of the banking sector. With a focus on safety and resilience across markets, the PRA mandates robust capital and liquidity reserves while setting standards around governance, risk controls, and regulatory reporting.
In addition to its main objectives, the PRA promotes the safety and soundness of its regulated firms and helps ensure that proper protections are in place for insurance policyholders.
Prudential Financial, Inc. is an American Fortune Global 500 and Fortune 500 company whose subsidiaries provide insurance, retirement planning, investment management, and other products and services to both retail and institutional customers throughout the United States and in over 40 other countries.
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Regulation Authority (PRA) is a U.K. financial services regulatory agency responsible for overseeing major financial institutions. The prudential regulator was established along with the Financial Conduct Authority (FCA) in 2013, replacing the preceding agency, the Financial Services Authority.
The Prudential Regulation Authority (PRA) works alongside the Financial Conduct Authority (FCA) and the Bank of England to regulate UK financial services. The PRA's focus is on minimising systemic risks to the UK financial system by ensuring that businesses delivering key financial services are safe and sound.
Prudential regulators have traditionally focused on financial metrics, such as whether institutions hold enough capital and liquidity to cope with an economic downturn, and whether they are managing financial risks appropriately.
The purpose of prudential regulation and supervision is to ensure that financial institutions and market infrastructures operating within the financial system are inherently safe and sound.
In promoting safety and soundness, the PRA focuses primarily on the harm that firms can cause to the stability of the UK financial system. A stable financial system is one in which firms continue to provide critical financial services – a precondition for a healthy and successful economy.
Background. The Paperwork Reduction Act (PRA) of 1980 establishes a broad mandate for agencies to perform their information activities in an efficient, effective, and economical manner. Section 3504 authorizes the Director of the Office of Management and Budget (OMB) to develop and implement policies.
The Prudential Regulation Authority regulates around 1,500 banks, building societies, credit unions, insurers and major investment firms. You can see lists of these firms here.
Prudential regulation is concerned with maintaining the safety and soundness of financial institutions, so that the community can have confidence that they will meet their financial commitments under all reasonable circ*mstances.
Prudential regulations include minimum capital requirements, liquidity or loan portfolio diversification standards, limitations on a bank's investment portfolio or lines of business, and other restrictions intended to limit the type of risks which a banking firm may undertake.
The objective of prudential regulation is to protect the stability of the financial system and protect deposits so its main focus is on the safety and soundness of the banking system and on non bank financial institutions (NBFIs) that take deposits.
By law, the Federal Reserve is responsible for supervising and regulating certain segments of the financial industry to ensure they employ safe and sound business practices and comply with all applicable laws and regulations (see figure 5.2).
The main aim of prudential regulations is to increase the stability of financial systems; however, such regulations also increase the risk-taking tendency of banks, they encourage them to combine and limit their lending possibilities with, at the same time, lowering the efficiency of monetary policy in affecting ...
As part of the Bank of England, we are responsible for the prudential regulation and supervision of around 1,330 banks, building societies, credit unions, insurers and major investment firms.
Settings. APRA regulates banks, insurers and most superannuation licensees via several core functions: Policy, Licensing, Supervision, Enforcement and Resolution.
The PRA acts to tackle serious failings in culture through its normal supervisory activity, through use of its supervisory powers, and through enforcement action.
The PRC governs the Prudential Regulation Authority (PRA) which is responsible for the prudential regulation of banks, building societies, other deposit takers, insurance companies and certain investment firms.
Whereas the PRA is responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms, the FCA is responsible for the prudential regulation of those financial services firms not supervised by the PRA such as asset managers and independent financial ...
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