The UK’s Prudential Regulation Authority (PRA) will publish a five-year strategy for the first time next year, its chief executive said in her first major speech in the role.

Speaking at the City of London’s Mansion House, Katharine Braddick, laid out her vision for the PRA as it enters its second decade.

After having “succeeded decisively” in its initial core mission of restoring resilience to the UK’s financial sector, the banking regulator must now turn its attention to the future, Braddick said.

The five-year strategy, set to be published in 2027, will focus on four priorities that Braddick believes will be central to its success: resilience, growth, innovation and transparency.

The PRA will “significantly increase” its focus on the operational and cyber resilience of financial institutions, she said. It will establish a new directorate reporting directly to Braddick, which she said will act as a centre of excellence. The PRA will also consult with fellow regulator the Financial Conduct Authority to release a new supervisory statement by the end of the year.

Growth is the “key economic policy question of this moment”, Braddock continued. Although it is not often the determining factor, regulation has a role to play in enabling this, she said.

The PRA will further develop its framework for this competitiveness and growth objective, addressing not only the costs and benefits of regulation, but also how the regulator’s work “influences the investment environment, the availability of capital for the firms we regulate and the pricing of the services they provide,” Braddick said.

“We will set out how that framework is embedded in our day-to-day decision-making, and how we will track the effect our work is having on the growth and international competitiveness of the UK,” she added.

This will ensure that the PRA’s regime remains “relevant, effective, and proportionate”, and articulate a well-founding understanding of its contribution to the economy, Braddock said.

The body will also work to improve its deployment of data analytics and new technologies for assessing emerging risks. This will involve the removal of data collection when its benefits are “not justified”, and streamlining its communications with firms, the chief executive added.

Finally, the PRA will enhance its transparency to firms, parliament and the public, allowing the regulator to be held accountable for meeting its commitments. As an example, Braddick said, the PRA intends to take “decisive” steps to improve the experience for banks and building societies in relation to internal models for residential mortgages.

Braddick joined as chief executive of the PRA in July, having previously served as Barclays’ group head of strategic policy. At the time of her appointment, then-chancellor Rachel Reeves described Braddick as “an accomplished pro-business leader with the experience to keep our financial system safe while backing the investment and lending that drives growth”.

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