(VOVworld) – The UK's Prudential Regulatory Authority (PRA), under the Bank of England (BoE), has set out tougher proposals for non-EU banks who want to open branches in the country, according to its report announced on Wednesday. The UK media says that a number of foreign banks might be banned from operating in the UK if they fail to satisfy the new strict conditions.
Some foreign banks might be banned from operating in the UK
Within the new regulatory framework, the PRA requires foreign banks to meet the UK’s standard supervision criteria for the financial sector. This is considered the prerequisite for allowing a foreign bank to operate in the country.
Foreign banks are requested to provide the PRA with information on their exact financial situation as well as their plans and solutions to deal with possible risks. The PRA also has the power to be able to withdraw the operative licenses of banks from any countries if they are concerned about the standards of local supervision activities. Foreign banks account for 2.4 trillion pounds (3.8 trillion USD) of assets in the country's banking system, equivalent to 160% of Britain’s GDP.