This chapter outlines a long-term vision for a strong and simple prudential framework for non-systemic firms in the UK and explains how the PRA could realise this vision over time.
3.1 The PRA is considering moving over the long term to a prudential framework for non-systemic and non-internationally active firms that simplifies prudential regulation for these firms while maintaining their resilience and not increasing the barriers to growth these firms face. The overarching objective of this 'strong and simple' framework would be to enable a dynamic and diverse banking sector in the UK in which successful firms can grow as other less successful ones contract and exit, while maintaining the resilience of PRA-regulated firms. The framework should be flexible enough to accommodate different business models, including models that could emerge in the future. Such a framework should be designed so that it supports firms' safety and soundness, and hence supports UK financia
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