We outline the prudential regulatory framework in which lenders have to operate in and the latest developments. Prudential regulation is designed to ensure that firms understand the risks across the business they face and have sufficient resources to absorb losses and continue to operate.
See below for detailed information on our policy work in this area.
Last updated: 7 March 2017
The FCA's study focuses on whether the available tools help mortgage consumers make effective decisions and if commercial arrangements between lenders and brokers lead to conflicts of interest.
Last updated: 28 February 2017
Ensuring lenders have sufficient and the right type of capital to absorb losses is a critical component of the prudential regulatory framework. This update keeps lenders abreast of the latest developments with regard to capital issues.
Last updated: 31 May 2017
Alongside the Bank of England and the PRA regulating individual firms, since the financial crisis a new body, the Financial Policy Committee, has been concerned with macro-prudential regulation with the mandate to ensure the stability of the financial system as a whole. Given the size and importance of the mortgage industry in the UK economy, the FPC has introduced a number of controls to the mortgage market to maintain financial stability.