BoE and PRA Publish Annual Reports for 2019-20
BoE and PRA published their annual reports and accounts for the period of March 01, 2019 to February 29, 2020. The BoE annual report provides information on activities for the preceding year and highlights strategic goals for 2020-21. For the first time, BoE also published a report on the climate-related financial disclosures. In line with the BoE expectations from financial firms, BoE has published the report setting out its approach to managing the risks from climate change across its entire operations, including the steps it has taken to improve understanding of these risks.
A key highlight of the BoE annual report is the work done across BoE in helping UK businesses and households manage through the economic shock from COVID-19 crisis. Other (highlights include putting into place the final major piece in the resolution regime for banks in UK and providing leadership on meeting the challenges from climate change and the provision of detailed climate-related disclosures. The report on climate-related financial disclosure of BoE covers its approach to climate-related risk disclosure, the governance structures and processes BoE uses to manage climate-related financial risk, approach to setting climate strategy and managing the implementation of this strategy, and approach to climate-related financial risk management, including the BoE targets and the metrics it tracks. The strategic goals for 2020-21, as mentioned in the annual report, include
- Maintaining monetary and financial stability in the UK’s new relationship with the EU
- Enhancing the strength, security, and efficiency of internal operations of BoE
- Embracing fintech
- Building greater operational resilience in the financial system
- Ending “too big to fail"
- Facilitating a smooth climate transition through more prolific climate reporting, more robust risk assessments, and the optimization of investors’ returns
The PRA annual report contains annual report of Prudential Regulation Committee, report on certain aspects of ring-fencing (following its implementation on January 01, 2019), and the Annual Competition Report (June 2020). The annual report includes information on the work on ensuring adequate capitalization of firms, supervising for operational resilience, ensuring orderly Brexit, and adapting to changes in the external market. Members of the public are invited to make representations to PRA, by September 18, 2020, on the PRA Annual Report and the way in which PRA has discharged, or failed to discharge, its functions during the period to which the report relates. Members are also invited to make representations on the extent to which, in their opinion, the PRA objectives have been advanced, the PRA has considered the regulatory principles to which it must have regard when carrying out certain of its functions (contained in section 3B of Financial Services and Markets Act 2000, or FSMA), and the PRA has facilitated effective competition in the markets for services provided by authorized firms in carrying on regulated activities in accordance with section 2H of FSMA.
Related Links
- Notification on BoE Annual Report and Accounts
- Notification on PRA Annual Report and Accounts and Related Publications
- BoE Annual Report and Accounts (PDF)
- PRA Annual Report and Accounts (PDF)
- PRA Authorizations Performance Reports for 2019/20 (PDF)
- Prescribed Persons (Reports on Disclosures of Information Regulations)—Annual Report 2019/20
- Practitioner Panel and Insurance Sub-committee Annual Report 2020 (PDF)
- Report on Climate Change Disclosures
Comment Due Date: September 18, 2020
Keywords: Europe, UK, Banking, Insurance, ESG, Climate Change Risk, Brexit, Ring-Fencing, Annual Report, Disclosures, Strategic Goals, PRA, BoE
Featured Experts
Michael Denton, PhD, PE
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.