The Prudential Regulation Authority (PRA) has put forward proposals to automatically increase 128 regulatory thresholds for banking, insurance, and credit union firms. These thresholds, which dictate applicable rules and reporting requirements, would be linked to nominal Gross Domestic Product (GDP).
The move is intended to modernise the regulatory framework, aiming to enhance proportionality and decrease compliance costs for many firms. It would replace the current system of manual, ad hoc updates, providing greater certainty for business planning and potentially reducing barriers to growth.
Among the thresholds included are a £320 billion total assets threshold for detailed capital reporting and a £7,500 threshold for amounts owed to a credit union by an individual. Other significant thresholds relate to insurer size under Solvency UK and the Small Domestic Deposit Takers regime.
The first automatic adjustment is scheduled for 1 July 2031, with further updates planned every five years thereafter. Katharine Braddick, Deputy Governor for Prudential Regulation at the Bank of England and CEO of the PRA, stated that this modernisation would help financial services firms plan for the future, offering stability and predictability.
The PRA has chosen nominal UK GDP as the indexation metric, as it accounts for both price changes and real economic growth. The consultation on these proposals opened today, 7 October 2026, and will close on 7 February 2027.