Today, 29 April, the PRA has published the next consultation in its work to create a Strong & Simple prudential regulatory regime for smaller, less complex banks and building societies.
This consultation (CP5/22) seeks to define the size and nature of those firms that will be included as a Simpler-regime Firm, for example a proposed maximum threshold of £15 billion of total assets.
Commenting, the BSA welcomed this next stage of the Strong & Simple process, a concept that the association has staunchly supported from the start. It is such an important move that the PRA needs to take the time to get it right first time.
We look forward to reviewing the detail and formally responding to this consultation. Before this, we anticipate a lively debate on the topic at the Building Societies Conference in Liverpool on 4 May when we welcome Nick Lock, Senior Advisor - Future Framework, PRA and other members of his team to a panel session. In this session we will also hear how smaller banks fare under the prudential regime's in Germany and Switzerland.
Notes to Editor:
The speakers on the panel on Strong & Simple at the Building Societies Conference on the afternoon of 4 May are:
Jeremy Palmer, Head of Prudential Policy and Regulation, Building Societies Association (Chair)
Nick Lock, Senior Advisor - Future Framework, UK Deposit Takers Supervision, Prudential Regulation Authority (Nick will also be joined by members of his team)
Dr Jürg de Spindler, Director, Association of the Swiss Regional Banks
Thorsten Reinicke, Adviser, Federal Association of German Cooperative Banks (BVR), Berlin