28th May 2014

BBA response to PRA consultation on supervising international banks

The BBA welcomes the PRA’s draft supervisory statement on its approach to the supervision of international branches, which as it points out, are a key component of the UK banking sector. Their presence in the UK enhances greatly the importance of London as an international financial centre. So there is an important balance to be struck between ensuring that the failure of an international bank with a branch in London does not harm the UK’s financial stability and creating a supervisory architecture that does not discourage such banks from participating in London’s vibrant international financial centre.

We think that the proposals in CP4/14 broadly strike the right balance and properly focus on the importance of assessing the equivalence of the home state’s supervisory architecture and particularly that of its resolution regime with that of the PRA’s, although the PRA does not comment on how this judgement will be made.

Download the full response via the link below.

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