UK proposals startle foreign banks

LONDON – The Bank of England’s Prudential Regulatory Authority (PRA) has published a consultation paper on its supervision of international banks in the UK, and especially those from outside the European Economic Area (EEA). The PRA proposed introducing a rule requiring “that non-EEA firms take all steps within their control to have adequate provision made in resolution plans for UK branches. The purpose of this draft rule is to support the policy by which the PRA will assess the adequacy of the home state authority’s resolution planning in terms of its potential impact on UK financial stability”.