| Prudential Regulation Authority (Bank of England)
| US Federal Reserve
| European Central Bank
|
| Regulatory Role
| Prudential supervisor
| Prudential supervisor (some supervisory and regulatory responsibilities shared with Office of Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation and other federal authorities, and with bank supervisors of various States).
| Prudential supervisor (together with national competent authorities of euro area countries). Possibility for other EU Member States to opt-in.
|
| Primary Prudential Responsibility
| Promote the safety and soundness of PRA-authorised persons. Contribute to the securing of an appropriate degree of protection for insurance policyholders.
| Provide a safe, flexible, and stable financial system. Work with other federal and state supervisory authorities to ensure the safety and soundness of financial institutions, stability in the financial markets, and fair and equitable treatment of consumers in their financial transactions.
| Promote safety and soundness of credit institutions and the stability of the financial system, with due regard for the unity and integrity of the single market
|
| Regulatory Coverage
| National: banks, insurers, Lloyd's underwriters and arrangers, certain investment firms. HM Treasury may add other PRA-regulated activities. PRA has powers of direction over financial holding companies and, potentially, non-financial holding companies.
| National/Federal: all US bank holding companies (including financial holding companies), state chartered banks that are part of the Federal Reserve System, and savings and loan holding companies. National banks chartered by the OCC are required to be members of the Federal Reserve System. Systemically important non-bank financial firms and financial market utilities can be designated by Financial Stability Oversight Council for supervision by the Federal Reserve.
| Regional: all credit institutions established in euro area (including consolidated supervision of financial holding companies and mixed financial holding companies, and participation in supplementary supervision of financial conglomerates). Prudential supervisory remit to extend to credit institutions established in other EU Member States that choose to opt-in.
|
| Prudential Regulation Authority (Bank of England)
| US Federal Reserve
| European Central Bank
|
| Associated bodies: macro-prudential oversight
| Financial Policy Committee (Bank of England)
Can give directions to PRA with respect to the implementation of macro-prudential measures. Can also make recommendations within the Bank, or to other persons including HM Treasury and the PRA.
| Financial Stability Oversight Council
Plays an important role in designating non-bank financial firms and infrastructures for enhanced supervision.
Can make recommendations to the primary financial regulatory agencies for new or heightened standards.
| European Systemic Risk Board
Body with EU-wide remit. ESRB can issue recommendations and warnings to the Union as a whole, to the European Commission, to Member States, to the European Supervisory Authorities and to national supervisors.
|
| Associated bodies: resolution
| Special Resolution Unit (Bank of England)
PRA, in consultation with Bank and HM Treasury, makes decision to put bank into special resolution regime. SRU manages the resolution process.
| Federal Deposit Insurance Corporation.
FDIC has extensive authority to resolve insured banks, non-FDIC institutions and new ordinary liquidation authority (OLA) to close, liquidate and resolve systemically important financial institutions.
Invoking OLA and appointment of FDIC as a receiver requires recommendation and vote by the Federal Reserve and designated regulator (e.g. FDIC, Securities and Exchange Commission (SEC), Federal Insurance Corporation for insurance companies) and determinations by Treasury Secretary (in consultation with the President).
| Euro area national resolution authorities
Withdrawal of banking licence is an ECB task. Under Recovery and Resolution Directive (draft) ECB or national authority must determine that institution is failing. ECB required to cooperate with national authorities to ensure a common understanding about respective responsibilities in crisis. Provision for resolution colleges in Recovery and Resolution Directive.
|
| Associated bodies: deposit insurance
| Financial Services Compensation Scheme—up to £85,000 per depositor per bank.
| Financial Deposit Insurance Corporation—up to $250,000 per depositor per insured bank.
| Euro area national deposit insurance schemes —up to €100,000 per depositor per bank (EU harmonisation of payout level).
|
