Prudential Regulation Authority

The Prudential Regulation Authority (PRA) is a part of the Bank of England and responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms. It sets standards and supervises financial institutions at the level of the individual firm.

The PRA has two statutory objectives: to promote the safety and soundness of these firms and, specifically for insurers, to contribute to the securing of an appropriate degree of protection for policyholders. It makes an important contribution to the Bank's core purpose of protecting and enhancing the stability of the UK financial system. There are also statutory requirements - Threshold Conditions - that firms must meet. These include firms maintaining appropriate capital and liquidity, and having suitable management.