PRA has written to the CEOs of insurers, deposit takers and international banks on its 2021 supervisory priorities:
- to insurers, it says it will be engaging with stakeholders as it looks to tailor the regulatory regime to the UK market. Its supervisory priorities will be financial resilience, operational resilience, dealing with the LIBOR transition, financial risks arising from climate change and the changes to PRA responsibilities following Brexit;
- to deposit-takers, it says financial and operational risk are key priorities, as are financial risks arising from climate change and the LIBOR transition. It also calls out credit risk and competition and future regulatory frameworks;
- to international banks, it calls out the common risks of financial, operational, climate change and LIBOR transition.
Throughout, also, PRA notes its expectations of strong governance within firms.