UK's PRA proposes linking regulatory thresholds to GDP

The UK’s Prudential Regulation Authority has proposed a major shift in how regulatory thresholds are set for banks, insurers and credit unions. In a proposal announced on Wednesday, the PRA said that 128 thresholds would automatically increase in line with nominal Gross Domestic Product. The regulator framed the move as a modernization of the existing system, replacing the current manual, ad hoc updates that many firms must monitor and report. A Bank of England press release said the change would improve proportionality and reduce compliance costs for many institutions. The announcement was reported by Sarah Young and written by William James.