PRA proposes 128 regulatory thresholds track nominal GDP automatically
The PRA has opened a consultation proposing that 128 thresholds across banking, insurance and credit unions rise automatically in line with nominal GDP, rather than through manual updates. This affects which rules apply to firms and what they must report, with the first change set for 2031.
- The PRA proposes that 128 thresholds across banking, insurance and credit unions increase automatically with nominal GDP.
- The largest in-scope threshold is £320 billion in total assets for detailed capital reporting; the smallest is £7,500 covering amounts owed to a credit union by an individual.
- The first automatic update would take place on 1 July 2031, with further updates every five years thereafter.
- The PRA selected nominal UK GDP, published by the Office for National Statistics, as the indexation metric over measures such as the Consumer Price Index or real GDP growth.
- The consultation opens 7 October 2026 and closes 7 February 2027, with some thresholds excluded and instead addressed in a parallel discussion paper under Section 4 of CP13/26.