Dear CEO...
There’s a lot to unpack in the Bank of England’s latest “Dear CEO” letter setting out supervisory priorities for UK deposit takers in 2026.
What stood out for me is how many of the themes move beyond policy or systems and land squarely on how firms are structured, governed and resourced.
A few observations that resonated with me:
👉🏽 𝗗𝗮𝘁𝗮 𝗾𝘂𝗮𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝗴𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 𝗮𝗿𝗲 𝗻𝗼𝘄 𝗽𝗿𝘂𝗱𝗲𝗻𝘁𝗶𝗮𝗹 𝗶𝘀𝘀𝘂𝗲𝘀
The PRA is clear that weaknesses in data undermine resilience, capital adequacy and decision-making. Addressing this isn’t simply a technology exercise, it relies on people who truly understand regulatory data end-to-end, how it flows through Finance, Risk and Treasury, and how it stands up to scrutiny.
👉🏽 𝗕𝗮𝘀𝗲𝗹 𝟯.𝟭 𝗮𝗻𝗱 𝗦𝗗𝗗𝗧 𝗿𝗲𝗮𝗱𝗶𝗻𝗲𝘀𝘀 𝗶𝘀 𝘀𝗵𝗶𝗳𝘁𝗶𝗻𝗴 𝗳𝗿𝗼𝗺 𝗶𝗻𝘁𝗲𝗿𝗽𝗿𝗲𝘁𝗮𝘁𝗶𝗼𝗻 𝘁𝗼 𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝗼𝗻
With 1 January 2027 less than a year away, the emphasis is now on parallel runs, Pillar 2 rebasing and ICAAP sign-off. Maintaining confidence in day-to-day liquidity and capital reporting while frameworks evolve requires depth of reporting experience and continuity within teams.
👉🏽 𝗔𝘀𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗮𝗻𝗱 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗿𝗲 𝗯𝗲𝗶𝗻𝗴 𝗿𝗲𝗶𝗻𝗳𝗼𝗿𝗰𝗲𝗱
Boards are expected to seek genuine assurance over regulatory numbers, not just comfort. That inevitably places greater weight on independent review, challenge and governance embedded within reporting functions, with some banks creating a 1.5LOD model.
👉🏽 𝗟𝗲𝗴𝗮𝗰𝘆 𝗰𝗼𝗺𝗽𝗹𝗲𝘅𝗶𝘁𝘆 𝗶𝘀 𝗮𝗰𝗸𝗻𝗼𝘄𝗹𝗲𝗱𝗴𝗲𝗱, 𝗵𝗼𝘄𝗲𝘃𝗲𝗿 𝗽𝗿𝗼𝗴𝗿𝗲𝘀𝘀 𝗶𝘀 𝘀𝘁𝗶𝗹𝗹 𝗲𝘅𝗽𝗲𝗰𝘁𝗲𝗱
The PRA recognises the reality of legacy systems and data architecture, yet the expectation is clear: firms must demonstrate credible plans, prioritisation and delivery. That demands close collaboration between regulatory reporting, data and change teams who can translate regulatory intent into practical outcomes.
Reading this letter, it feels less like a list of requirements and more like a signal around how firms can organise themselves, where expertise sits, and how effectively teams can respond to increasing scrutiny.
As we move through 2026 and towards the Jan 2027 deadline, the differentiator may not be who understands the rules best, but who has built the strongest foundations to deliver against them.
That’s a theme I’m hearing more and more in conversations with Regulatory Reporting and Risk leaders.
Having spent over 10 years recruiting across Finance, Regulatory Reporting and Risk, I founded Navari Talent to support regulated businesses as they build the capability required to meet regulatory expectations and evolve with confidence.