Future role of the Prudential Regulatory Authority
The Bank of England and the FSA have published a joint paper setting out their views on the role the Prudential Regulatory Authority (“PRA”) should take with respect to banking supervision. HM Treasury is expected to publish a consultation paper and draft legislation establishing the new regulatory structure in June, and the purpose of this paper is to inform debate and facilitate engagement of stakeholders in order to help refine the PRA’s approach to supervision of the banking sector.
In summary, there is much reiteration of the PRA’s single statutory objective of promoting the stability of the financial system, as proposed by HM Treasury in it's February 2011 consultation, but with some more detail on how the PRA will go about this.
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