Letter from the Chancellor of the Exchequer to the Governor of the Bank of England providing recommendations for the Prudential Regulation Committee (PRC).
The Prudential Regulation Committee (PRC) is responsible for the exercise of the Bank of England's functions as the Prudential Regulation Authority (PRA). The PRA is the UK's microprudential regulator for around 1,500 banks, building societies, credit unions, insurers and major investment firms.
The Bank of England Act 1998 requires the Treasury, at least once in each Parliament, to make recommendations to the PRC about aspects of the government's economic policy to which the PRC should have regard when advancing the objectives and discharging the duties of the PRA.
This letter provides such recommendations and outlines the important role the PRA plays in facilitating growth and international competitiveness.
The PRC is required to respond to the recommendations from the Treasury within a year of receiving the recommendations, and each subsequent year after that. These responses set out action that the PRC has taken, or intends to take, in accordance with the recommendations, or why it has not acted.
