The Prudential Regulation Authority (PRA) has published a consultation proposing targeted changes to the UK recovery and resolution framework for PRA-authorised banks and building societies, including narrowing which firms must produce periodic resolvability reporting and disclosures and reducing the minimum recovery-plan review frequency for Small Domestic Deposit Takers (SDDTs). On resolution, the PRA proposes to amend the Resolution Assessment Part of the PRA Rulebook so that periodic reporting and public disclosure requirements apply only to firms with retail deposits of at least GBP 100 billion, up from GBP 50 billion, while retaining retail deposits as the reference metric and making drafting updates to reflect the UK’s withdrawal from the EU. Firms below the threshold would remain subject to expectations to be resolvable on an ongoing basis, with the Bank of England and the PRA continuing proportionate resolvability assessments for “mid-tier” firms without the Resolution Assessment Part’s periodic reporting and disclosure obligations. On recovery, the PRA proposes to amend the Recovery Plans Part to require SDDTs and SDDT consolidation entities to review recovery plans at least every two years rather than at least annually, while keeping the requirement to update plans promptly following material changes and preserving the PRA’s ability to request an updated plan. The consultation includes estimated annualised savings of GBP 1.2 million to GBP 1.8 million across industry from the proposed resolution-threshold change and GBP 7 million to GBP 10.5 million for the recovery-plan review change (GBP 105,000 to GBP 155,000 per firm), noting that new and growing banks are excluded from the recovery estimate and realised savings may be lower. Responses are requested by Friday 31 October 2025. The PRA proposes to implement the changes in H1 2026, with the final position to be confirmed in a policy statement after the consultation closes.
Prudential Regulation Authority 2025-07-15
United Kingdom's Prudential Regulation Authority consults on raising the resolution assessment reporting threshold to GBP 100 billion and easing recovery plan review requirements for SDDTs
The Prudential Regulation Authority (PRA) is consulting on changes to the UK recovery and resolution framework for PRA-authorised banks and building societies. Key proposals include raising the threshold for periodic resolvability reporting to firms with retail deposits of at least GBP 100 billion and reducing the minimum recovery-plan review frequency for Small Domestic Deposit Takers to biennially. Estimated annualised savings from these changes range from GBP 8.2 million to GBP 12.3 million across the industry.