FIN. TeamOn 10 January 2023, the BoE (PRA) published the following Dear CEO letters outlining its key supervisory priorities for insurers, international banks active in the UK, and UK Deposit Takers in 2023:
- Insurance supervision: 2023 priorities (Letter from Charlotte Gerken and Shoib Khan);
- International banks active in the UK: 2023 priorities (Letter from Nathanaël Benjamin and Rebecca Jackson); and
- UK Deposit Takers Supervision: 2023 priorities (Letter from David Bailey and Charles Woods).
Insurance supervision: 2023 priorities
The PRA’s main focus for 2023 for its supervision of life and general insurers will be on: financial resilience; risk management; implementing financial reforms; reinsurance risk; operational resilience; and ease of exit for insurers. Other areas of focus will include: non-natural catastrophe risk; financial risks arising from climate change; Diversity, Equity, and Inclusion (DEI); and the PRA’s supervisory approach.
International banks active in the UK: 2023 priorities
The PRA’s 2023 priorities for international banks (‘firms’) active in the UK will remain focused on: financial resilience; risk management and governance; operational risk and resilience; Real Time Gross Settlement (RTGS); data; and financial risks arising from climate change. Other areas of supervisory focus outlined are: Diversity, Equity, and Inclusion (DEI); and strengthening the PRA’s supervisory approach.
UK Deposit Takers Supervision: 2023 priorities
The PRA’s 2023 priorities for UK Deposit Takers include: credit risk; financial resilience; risk management and governance; operational risk and resilience; Real Time Gross Settlement (RTGS); model risk management (MRM); data; and financial risks arising from climate change. Further focus areas prioritised are: Diversity Equity, and Inclusion (DEI); resolution; and supervisory approach.
