Prudential Regulation Authority (PRA)

The PRA oversees prudential regulation for financial institutions in the UK, focusing on systemic stability and safety.

• Capital Adequacy: Mandates sufficient capital reserves.
• Risk Management: Enforces frameworks to mitigate systemic risks.
• Supervisory Reporting: Requires regular reporting of financial health.

Created in 2013, the PRA operates alongside the FCA as part of the UK’s twin peaks regulatory framework.

• Penalties: Firms may face fines or additional regulatory oversight.
• Operational Risks: Non-compliance may disrupt operations.
• Reputational Damage: Breaches can harm market confidence.

• Stability: Enhances resilience of financial institutions.
• Investor Confidence: Builds trust through strong oversight.
• Risk Reduction: Protects against systemic financial crises.