This supervisory statement sets out the Prudential Regulation Authority’s (PRA) expectations of credit unions with regards to the Credit Union rules. It applies to all UK credit unions as defined in the Credit Union Part of the PRA Rulebook.
Areas covered include:
- capital;
- liquidity;
- additional activities;
- maximum deposit levels;
- lending;
- investments;
- governance and organisation;
- risk management; and
- operational risk and resilience
Additional expectations are also set out for credit unions:
- with more than £10 million in assets;
- with more than £50 million in assets;
- with more than £100 million in assets;
- that invest in more complex investments;
- that lend to corporate members;
- that provide consumer credit; and
- that provide mortgages.
This statement is intended to be read together with the rules contained in the Credit Union Part of the PRA Rulebook. This statement is relevant to credit unions.
The statement seeks to advance the PRA’s statutory objective of promoting the safety and soundness of the firms it regulates by setting out the PRA’s expectations of how credit unions should comply with core elements of the regulatory framework contained in the Credit Union Part of the PRA Rulebook.
Current version
Published 26 July 2023. Effective from 29 August 2023.
- Following PS 11/23 – Credit Unions: changes to the regulatory regime