SS5/21 - International banks: The PRA’s approach to branch and subsidiary supervision

Supervisory Statement 5/21

First published on 26 July 2021

This Supervisory Statement (SS) sets out the Prudential Regulation Authority’s (PRA) expectations for receiving information concerning the risks in the wider group and co-operation from other supervisory authorities concerned with the firm or its wider group. This is necessary for the PRA to be satisfied that the international bank is meeting threshold conditions, particularly the threshold condition concerning the effective supervision of the firm. This SS also sets out expectations of international banks in meeting the threshold condition on the prudent conduct of business, including their systems and controls and risk management.

This SS expands on the PRA’s approach to banking supervision. It applies to all PRA-authorised banks and designated investment firms that are headquartered outside of the UK or are part of a group based outside of the UK. In this SS, such firms are referred to as ‘international banks’. It therefore covers those firms operating in the UK as a subsidiary or through a branch. Accordingly, this SS replaces SS1/18 ‘International banks: the Prudential Regulation Authority’s approach to branch authorisation and supervision’.