Finance glossary
Prudential Regulation Authority — PRA
Also known as: PRA
In simple terms
The PRA is part of the Bank of England. It makes sure banks, building societies and insurers are run safely and are financially sound, so they can meet their obligations to customers.
On this page
What does the PRA mean?
The Prudential Regulation Authority (PRA) is part of the Bank of England and is responsible for the “prudential” regulation of banks, building societies, credit unions, insurers and major investment firms — in other words, their safety and soundness.
It works alongside the FCA, which focuses more on conduct and consumer protection.
How the PRA works
The PRA sets rules on how much capital firms must hold and how they manage risk, so they can withstand shocks and are less likely to fail. It supervises firms and can intervene if their financial resilience is in doubt.
Its aim is stability — reducing the chance and impact of a firm collapsing.
How could this affect me?
The PRA’s work is mostly behind the scenes, but it underpins your confidence that the bank or insurer holding your money is soundly run. It complements the FSCS, which pays compensation if a firm does fail.
For day-to-day complaints and conduct issues, the FCA and Financial Ombudsman Service are the bodies you deal with.
Things to watch out for
- The PRA regulates firms’ soundness, not individual complaints.
- For conduct and complaints, the FCA and Ombudsman are the relevant bodies.
- A soundly regulated firm can still see investments fall in value.
Know your rights
- The PRA is part of the Bank of England and regulates the financial soundness of banks, insurers and major investment firms.
- If a regulated deposit-taker or insurer fails, the FSCS may compensate eligible customers.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- Bank of England, Prudential Regulation Authority (opens in a new tab). Accessed 22 Aug 2026.