Bank of England to unveil "fresh approach" to regulation
The Bank of England is set to unveil its new principles-based approach to regulating banks and larger financial institutions this week.
The Daily Mail reports the regulatory model set to be employed by the new Prudential Regulation Authority will be set out at a conference at the QE2 Centre in Westminster tomorrow.
The report suggests the PRA will move away from “box-ticking” regulation to a more principles-based approach.
It says the new regulator will rank the capital, solvency, quality of loan book, conduct of business and liquidity of individual banks at five different levels.