The Prudential Regulation Authority (PRA) has published its Business Plan 2025/26 which sets out the workplan for and regulatory initiatives to advance its strategic priorities. This year's business plan is said to reflect the evolution of the PRA's priorities, and in particular the work it is doing to deliver its new secondary objective on competitiveness and growth. Specific initiatives include:
- Implementing the Basel 3.1 standards, where the PRA intends to publish its final rules, once Parliament has revoked the relevant parts of the Capital Requirements Regulation (CRR).
- Finalising and implementing the strong and simple framework for small domestic deposit takers. During 2025/26, the PRA will finalise the simplified capital regime and the additional liquidity simplifications. It intends to publish a policy statement on these in Q4.
- Replacing CRR elements of assimilated law with PRA rules. The PRA consulted on proposals to replace, with modifications where deemed appropriate, the relevant firm-facing provisions in the CRR with PRA rules in 2024 and intends to publish its final rules once Parliament has revoked the relevant parts of the CRR.
- Changes to the securitisation rules, to make the existing framework more proportionate. The PRA intends to consult in H2. Additionally, the PRA expects to publish its final rules to replace the CRR securitisation capital requirements during 2025, once Parliament has revoked the relevant parts of the CRR.
- Internal ratings-based models & model risk, liquidity, and credit risk management. During 2025/26, the PRA will continue to focus on how banks are embedding and implementing the expectations set out in SS1/23.
- Liquidity lessons learnt from the events of March 2023. The PRA intends to review the liquidity supervisory framework and consider changes, including regulatory reporting. Any proposed changes will be open for consultation in 2026.
- Responsible openness to international banks, finalising targeted refinements to its approach to banks branching into the UK and clarifications to expectations around booking arrangements in H1.
- Finalising further remuneration reform in H2, to streamline the UK regime.
- Operational risk and resilience, in particular, the PRA aims to finalise its policy on operational incident and outsourcing and third-party reporting in 2025. Additionally, the regulators intend to start consulting in H2 on expectations on the management of ICT and cyber-resilience risks.
- Consulting on proposed changes to the senior managers and certification regime aimed at improving the clarity, efficiency, and proportionality of the regime.
[View source.]
