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On 26 March 2026, the Prudential Regulation Authority (PRA) published Policy Statement 10/26, finalising amendments to the Bank of England's resolution and recovery frameworks. The PRA received three responses to its consultation paper 14/25 on these proposals, with all respondents supporting the changes. The PRA has implemented two key amendments, effective from 1 April 2026. First, the Resolution Assessment threshold has been raised from £50 billion to £100 billion in retail deposits, ensuring only the very largest firms are subject to Resolution Assessment reporting and disclosure requirements. This change reduces regulatory burden while maintaining robust requirements commensurate with the risks posed by the largest institutions. Second, Small Domestic Deposit Takers (SDDTs) are no longer required to review their recovery plans annually; they must now review them at least once every two years. SDDTs experiencing material changes to their business or risk profile must continue updating plans more frequently, and new and growing banks are expected to review plans more regularly than the two-year minimum. The PRA acknowledged respondent suggestions for regular threshold indexation and systematic review schedules. However, the PRA declined to implement automatic indexation at this stage, noting that the Bank is developing a systematic approach to updating regulatory thresholds to reflect economic growth. The PRA will consider respondent feedback as this work progresses. The PRA also maintained its proposed two-year recovery plan review cycle for SDDTs rather than extending it to three years, to ensure alignment between recovery plans, Internal Capital Adequacy Assessment Processes, and Internal Liquidity Adequacy Assessment Processes. These amendments apply to PRA-authorised UK banks and building societies. The PRA has published the final policy instruments amending the Resolution Assessment and Recovery Plans parts of the PRA Rulebook, alongside related updates to Supervisory Statement 9/17. REFERENCES: Policy Statement 10/26 – Amendments to Resolution Assessment threshold and Recovery Plans review frequency: https://www.bankofengland.co.uk/prudential-regulation/publication/2026/mar/ps1026-amendments-to-resolution-assessment-threshold-and-recovery-plans-review-frequency

On March 26, 2026, the Prudential Regulation Authority (PRA) published a policy statement (PS10/26), finalising amendments to the Bank of England's resolution and recovery frameworks. The policy has not changed from consultation paper ( CP14/25 ) and confirms the following. From the implementation date, UK firms with equal to or greater than £100bn in retail deposits will be in scope of the Resolution Assessment rules. The PRA has already communicated the dates by which firms in-scope of the amended threshold are next expected to submit reports and publish disclosures. From the implementation date, Small Domestic Deposit Takers (SDDTs) will only be required to review their recovery plans at least once every two years. However, SDDTs experiencing changes that could have a material effect on their recovery plans should update their plans more frequently. The PRA expects that SDDTs, which are ‘new and growing banks’ will likely need to review and update their recovery plans more regularly than the proposed minimum. This policy statement will take effect on April 1, 2026.

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United Kingdom's Prudential Regulation Authority Increases Resolution Assessment Threshold and Extends Recovery Plan Review Cycles

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UK's Prudential Regulation Authority Publishes Policy Statement on Amendments to Resolution Assessment Threshold and Recovery Plans Review Frequency