PRA publishes annual reports

The PRA has published its annual report for 2024/25, and a second report on its secondary competitiveness and growth objective.

The annual report outlines the PRA’s achievements in advancing its statutory objectives and strategic priorities, including:

• Implementing prudential reforms in banking, such as a second near-final policy statement on Basel 3.1 and simplification of the capital regime for small domestic deposit takers;
• Substantial policy changes to the insurance prudential framework, including reforms to the Matching Adjustment;
• Final policy and rules for critical third parties ;
• Work with the FCA in relation to operational resilience; and
• Contributing to the BoE’s inaugural system-wide exploratory scenario exercise.

The second report documents the PRA’s action to further the secondary competitiveness and growth objective. In terms of progress, the PRA notes in addition to the above its work on:

• New Bank and New Insurer Start-Up units;
• Remuneration reforms;
• Leverage ratio treatment of omnibus account reserves;
• Approach to thresholds in the banking system;
• Securitisation capital requirements’
• Solvency UK
• Insurance special purpose vehicles