BoE announces that the PRA is to streamline supervision as part of 2026 priorities

• From 1 March larger firms will begin to move to this two-year cycle, while maintaining a regular cadence for discussion of important matters, alongside ad hoc supervisory meetings. This will result in firms having a more proportionate and efficient set of engagements with the PRA.

The Bank of England's announcement regarding the PRA's streamlined supervision indicates a shift toward a more efficient regulatory framework for larger firms. This two-year cycle promises to ease the regulatory burden, which could lead to a positive sentiment in the market, enhancing the appeal of GBP and potentially affecting fixed income and equities as firms may allocate resources more strategically over time.