The Prudential Regulation Authority has issued a policy statement finalising its updates to the supervision of international banks and designated investment firms operating in the UK through branches or subsidiaries, alongside changes to branch regulatory reporting and booking model expectations. The package updates Supervisory Statement 5/21 and related reporting rules and guidance, and deletes Supervisory Statement 1/17 by moving whole-firm liquidity reporting into the Branch Return. On branch risk appetite, the PRA increased two existing Financial Services Compensation Scheme (FSCS)-linked indicative deposit thresholds by 30% to GBP 130m and GBP 650m, retained the new GBP 300m indicative threshold for retail and small company instant access deposits regardless of FSCS coverage, and removed references to transactional deposits from the GBP 130m and GBP 300m thresholds. The revised Branch Return Form will no longer require routine reporting of transactional deposit balances or customer counts, focusing instead on instant access deposit balances and number of customers, while firms must be able to provide transactional-customer information on request and the PRA will use instant access customer numbers as a trigger for further supervisory investigation against the existing 5,000 transactional-customer indicator. For whole-firm liquidity, branches will report summary Liquidity Coverage Ratio and Net Stable Funding Ratio information as reported to home state supervisors, with flexibility where reporting dates and submission timelines do not align and clarified expectations for additional reporting in stress. Booking model guidance was also refined, including clarifications on scope for branches and UK trading banks, interaction with Article 21c of CRD6, and amendments to trade capture and trader-control wording. The updated SS5/21 takes effect immediately. Branch reporting changes take effect from 1 March 2026, with the first revised Branch Return required for data as at 30 June 2026 and due 30 business days later, while relevant firms should complete a self-assessment of booking arrangements to a timeline agreed with their PRA supervisory contact.
Prudential Regulation Authority 2025-05-20
Prudential Regulation Authority finalises SS5/21 updates raising branch deposit thresholds to GBP 130m and GBP 650m and streamlining Branch Return reporting
The Prudential Regulation Authority has finalized updates to the supervision of international banks and designated investment firms in the UK, revising Supervisory Statement 5/21 and related reporting rules. Key changes include increased Financial Services Compensation Scheme-linked deposit thresholds, removal of transactional deposit references, and refined booking model guidance. Branch reporting changes will take effect from March 2026, with the first revised Branch Return due for data as of June 2026.