cifa.ac
1 post
Jan 07, 2025
4:07 AM
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The Prudential Regulation Authority PRA regulations London, part of the Bank of England, plays a critical role in overseeing the financial stability of institutions in London, one of the world’s leading financial hubs. PRA regulations are designed to ensure that financial firms operating in the UK have the necessary resilience to withstand economic shocks and continue to function effectively.
These regulations primarily focus on the safety and soundness of firms, with particular emphasis on banks, insurers, and major investment firms. Key areas of PRA regulation include capital adequacy, liquidity, risk management, and governance standards. The PRA sets specific capital buffers and stress-testing requirements to ensure firms can absorb potential losses and protect the broader financial system.
The PRA also monitors firms' adherence to conduct regulations and operational resilience, especially in response to new risks such as cybersecurity and systemic shocks. By enforcing these regulations, the PRA helps maintain financial stability in London and across the UK.
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