Prudential Regulation Authority and Risk premium: Difference between pages

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imported>Doug Williamson
(Create the page. Source: IFRS 13, page A631.)
 
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(PRA).
For financial reporting and fair valuation purposes, risk premium is  defined as compensation sought by risk-averse market participants for bearing the uncertainty inherent in the cash flows of an asset or a liability.


The UK body responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms.


 
This is a similar concept to market risk premium in the Capital asset pricing model.
The PRA’s primary objectives include:
 
#To promote the safety and soundness of these firms; and
#Specifically for insurers, to contribute to the securing of an appropriate degree of protection for policyholders.
 
 
The PRA has a secondary objective of facilitating effective competition in the markets served by these firms.
 
 
The PRA's responsibilities in the UK were formerly undertaken by the Financial Services Authority (FSA).
 
The former FSA's other responsibilities were substantially transferred to the Financial Conduct Authority (FCA).
 
 
The PRA is part of the Bank of England.




== See also ==
== See also ==
* [[Australian Financial Regulation]]
*[[Fair value]]
* [[Bank]]
*[[IFRS 13]]
* [[Bank of England]]
*[[Market participant]]
* [[Bank supervision]]
*[[Market risk premium]]
* [[Broker-dealer]]
*[[Capital asset pricing model]]
* [[Building society]]
* [[CFTC]]
* [[Credit union]]
* [[Designated investment firm]]
* [[Financial Conduct Authority]]
* [[Financial Services Authority]]
* [[Financial stability]]
* [[Insurer]]
* [[Leverage]]
* [[Liquidity risk]]
* [[Prudential]]
* [[Twin Peaks]]

Revision as of 16:09, 26 July 2015

For financial reporting and fair valuation purposes, risk premium is defined as compensation sought by risk-averse market participants for bearing the uncertainty inherent in the cash flows of an asset or a liability.


This is a similar concept to market risk premium in the Capital asset pricing model.


See also

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