3.1 Chapter 3 in DP1/21 outlined a long-term vision for a strong and simple prudential framework for non-systemic firms in the UK and explained how the PRA could realise this vision over time.
The long-term vision
3.2 DP1/21 noted that the diversity of PRA-regulated firms that are not considered systemically important suggested it was unlikely to be feasible to have a single set of strong and simple prudential rules applying to all non-systemic firms while still maintaining their resilience. The DP suggested it would be more appropriate to have requirements that expand and become more sophisticated as the size and/or complexity of firms increase - this was the PRA's long-term vision for a strong and simple framework. The DP asked the following question:
Q2: What do you think of the long-term vision for the strong and simple prudential framework for non-systemic banks and building societies in the UK?
3.3 The vast majority of respondents were supportive of the vision. Among the responde
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