Victoria Saporta: The regulatory foundations of international competitiveness and growth

Speech by Ms Victoria Saporta, Executive Director for Prudential Policy of the Bank of England, at the Bank of England, London, 27 February 2023.  

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
28 February 2023

Accompanying appendix of the speech 


Parliament is debating a Financial Services and Markets Bill that will redefine the PRA's powers and responsibilities. The Bill would give the PRA a new secondary objective. This will require us to act when we can to facilitate the UK economy's international competitiveness and its growth over the medium to long term, subject to alignment with international standards.

Let me be clear. I – and the PRA as a whole – know that this is a very important change. I'm going to talk today about what this change will mean for how the PRA makes rules.

It's easy for me to sum that up. This is a big deal. It will make a big difference. We take the new objective seriously. We will make rules differently as a result. Let me tell you how.

I'll start by sharing my ideas about how the financial sector supports competitiveness and growth, and about how good prudential regulation provides foundations for success.

I will then tell you what the PRA will do to strengthen those foundations. Our plan is to deliver responsible openness that harnesses the UK's strengths as a global financial centre. We will tailor rules to UK circumstances when that is appropriate and when we can do so in ways that maintain trust.

We are working hard to deliver this plan. That is why I am able to use this occasion to announce the publication of two consultation papers proposing tailored liquidity, disclosure, reporting and remuneration rules for small banks and building societies. These proposals show how we can use our rule making powers in ways that are good for competitiveness and growth.