Recommendations for the Prudential Regulation Committee: April 2022

The 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 deposit-taking firms, insurers and systemically important investment firms. The PRA is responsible for ensuring that firms it regulates are properly managing their capital and liquidity positions.

The Bank of England Act 1998 allows the Treasury to make recommendations to the PRC about aspects of the economic policy of the government to which the PRC should have regard when advancing the objectives and discharging the duties of the PRA.

This letter provides such recommendations. It should be read in conjunction with the letter sent to the Governor of the Bank of England on 23 March 2021 as the recommendations in this letter are intended to supplement rather than replace the recommendations made in the 2021 letter.