The PRA has written to CFOs of major UK banks on their preparations for the third Resolvability Assessment Framework assessment which will include a detailed assessment of firms’ ability to achieve the Continuity and Restructuring outcome. The letter summarises the BoE’s plans and gives some scenario guidance to firms. The assessment will:
- assess overall ability of firms to achieve the three resolvability outcomes;
- assess progress in remediating previously identified issues; and
- include targeted testing of firms’ capabilities under the Continuity and Restructuring outcome – looking at how the regulator would engage with banks during contingency planning.