PRA’s business plan for 2020/2021
On 9 April 2020, the PRA published its business plan for the year ahead. The PRA confirms that it has had to reassess its plans in light of COVID-19 and re-prioritise work and resources. In addition to cancelling the annual cyclical scenario stress test, delaying certain skilled person reviews and extending out consultations, the PRA is also extending the implementation timescales for new policies that have recently been consulted on, including changes to internal ratings based models which will now be delayed until the beginning of 2022.
The plan also details the strategic goals of the PRA for the year ahead, covering: (i) robust prudential standards and supervision; (ii) adapting to market changes and horizon scanning; (iii) financial resilience; (iv) operational resilience; (v) recovery and resolution; (vi) competition; (vii) Brexit; and (viii) efficiency and effectiveness. In particular, the PRA will finalise and implement the policy on the capital requirements for credit unions during 2020. The PRA will also clarify and publish its final approach to setting PRA buffers for new banks.