ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Yes, I understand this from the notes
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No, I don’t understand this from the notes
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No, I don’t understand this, as I have not read the notes
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None of the above
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Detailed explanation-1: -The Prudential Regulation Authority (PRA) is a part of the Bank of England and responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms. It sets standards and supervises financial institutions at the level of the individual firm.
Detailed explanation-2: -But what does “prudential regulation” mean? Put simply, prudential regulation is a legal framework focused on the financial safety and stability of institutions and the broader financial system.
Detailed explanation-3: -The Bank of England prudentially regulates and supervises financial services firms through the Prudential Regulation Authority (PRA).
Detailed explanation-4: -The PRA’s primary objectives will remain the safety and soundness of firms and, for insurers, an appropriate degree of protection for policyholders. We will keep our existing secondary objective to facilitate effective competition in markets for financial services.