PRA reports strong alignment, firm trust on growth objective
The Prudential Regulation Authority (PRA) has published its third annual report detailing metrics to monitor its performance against the Secondary Competitiveness and Growth Objective (SCGO). The June 2026 report outlines quantitative and qualitative measures across three regulatory foundations.
Global Standards and Robust Resilience
The PRA's framework consistently meets international standards, as affirmed by the IMF's 2022 Financial Sector Assessment Programme (FSAP), which found the UK regulatory framework aligns with agreed international standards.
The assessment noted 17 IAIS Insurance Core Principles (ICPs) observed, six largely observed, and only one partly observed.
Similarly, the Basel Committee on Banking Standards (BCBS) confirmed the UK adopted 29 out of 29 Basel III standards by 2025 Q3, with compliance for Net Stable Funding Ratio (NSFR) and Large Exposures assessed as largely compliant.
The UK banking system remains well-capitalised, with major UK banks showing an aggregate CET1 capital ratio of 14.7% in 2025 Q4 and a Liquidity Coverage Ratio (LCR) of 146% in February 2026.
The insurance sector also demonstrates strong capitalisation, with average Solvency Capital Requirement (SCR) coverage ratios of 201.0% for life and 222.6% for non-life sectors as of 2025 Q4.
Streamlining Processes, Enhancing Engagement
The PRA actively refines its regulatory processes and engagement.
The 2025 Firm Feedback survey showed 89.2% of respondents agreed the PRA is clear in its reasons for new policy.
However, satisfaction regarding the UK's attractiveness for business, influenced by PRA actions, stood at 56.4% (down from 57.3% in 2024).
Efforts to reduce administrative burden include deleting 37 reporting templates by December 2025, as outlined in PS27/25. The PRA also committed to further streamline banking sector reporting through its Future Banking Data (FBD) project.
Operational efficiency is monitored, with a target of over 98% of authorisation cases closing within statutory service standards.
Firms' satisfaction with rulebook accessibility and stakeholder interactions is also tracked.
A Solid Foundation, Ongoing Refinement
The PRA's third accountability report offers a transparent look at its progress on competitiveness and growth.
While demonstrating strong international alignment and robust financial resilience, the slight dip in firm satisfaction regarding UK business attractiveness highlights areas for refinement.
Continued efforts to streamline reporting and support innovative firms will be key to balancing prudential goals with market dynamism.