By Marion Dakers and Laura Noonan | Updated on Oct 07, 2026 at 10:52 AM
The Bank of England wants to index-link more than a hundred thresholds that push lenders and insurers into more onerous regulations, a move it said would reduce barriers to growth.
Companies face 128 thresholds that trigger regulations, according to a statement from BOE’s arm, the Prudential Regulation Authority . These range from the £320 billion ($424 billion) total assets threshold for detailed capital reporting, to a £7,500 threshold covering amounts owed to a credit union by an individual, it said.
From July 2031, the PRA proposes automatic increases to these levels at the same rate as nominal gross domestic product, with further updates to the thresholds every five years. Currently, these amounts are only changed at the behest of the regulator.
“This modernisation will significantly help financial services firms plan for the future, offering crucial stability and predictability, while also preventing out of date thresholds becoming restrictive barriers to growth,” Katharine Braddick, chief executive officer of the PRA, said in the statement.
A consultation on the proposed change will run until Feb. 7. The PRA said some of its regulatory thresholds are not “suitable for automatic indexation,” and the consultation will explore which ones should be in scope.
The £35 billion deposit threshold for ring-fencing, which forces banks to split their retail operations from riskier business, is set by the UK Treasury, so would fall outside the plan. This level was increased last year after extensive consultation with industry.