On 29 April 2021, the Prudential Regulation Authority (PRA) published “Discussion Paper 1/21 A strong and simple framework for non-systemic banks and building societies”. Like so many PRA documents, it is longer than it needs to be, because it is so repetitive. But it is still worth a read, and a response.
The prudential regulation of banks and building societies is complicated. The PRA wants to make it “strong and simple”. The plan is to start with a strong and simple framework for firms that are neither systemically important nor internationally active. And, when the PRA has got that right, to simplify the rules for other banks and building societies, where it can.
This article was first published in The Banker on 19 May 2021. The full article is available to subscribers.