The PRA’s latest assessment of the credit union sector highlights the regulator’s view of the key risks to credit unions with total assets up to £50m. It addresses the particular risks relating to:
- operational resilience;
- disorderly failure; and
- standards of governance.
The letter gives detail on the PRA’s expectations and plans for its supervisory work and says firms should read the letter in conjunction with the Dear CEO letter the PRA sent to all deposit taking firms in January.