PRA has updated its approach documents on banking and insurance supervision. Key changes include:

  • updates explaining PRA’s new secondary objective on competition;
  • addition of statement regarding The Bank of England and Financial Services Bill and the proposed changes to PRA’s structure and governance;
  • information on the structure and purpose of the PRA Rulebook;
  • new sections on resolvability, the Senior Manager Regime and the stress testing regime;
  • amendments to the Capital section, particularly on the PRA buffer and its relationship to the fourth Capital Requirements Directive buffer, and new text on the Leverage Ratio Framework;
  • new text on the LCR;
  • updates to reflect the implementation of Solvency 2 and the SIMR; and
  • a new section on analysis of assets and investments outlining PRA’s new dedicated Investments Framework.

(Source: PRA updates its approach to banking and insurance supervision)