On April 29, the Bank of England’s (BoE’s) Prudential Regulation Authority (PRA) published a discussion paper titled ‘A strong and simple framework for non-systemic banks and building societies’. Like so many PRA documents, its heavy repetition makes it much longer than it needs to be; however, 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 such a framework for firms that are neither systemically important nor internationally active. And, when the PRA has got that right, it wants to simplify the rules for other banks and building societies, where possible.
