The UK banking regulatory system: a bimodal regulatory model

The supervision system of British banks is the "bimodal supervision" model, which has gradually formed after the international financial crisis and is considered to be the mainstream of the financial supervision system. The "bimodal regulation" model in the UK includes two main regulatory agencies: 

1. The Prudential Regulation Authority (PRA): As a subsidiary of the Bank of England, the primary responsibility of the PRA is to provide micro prudential supervision of banks, insurance companies, and large investment institutions. The goal of PRA is to ensure the safety and stable operation of regulatory objects, reduce the impact of institutional bankruptcy risk on overall financial risk, and provide appropriate protection for some investors. The characteristic of PRA regulation is to identify systemically important institutions, achieve targeted regulation, and adopt a pre intervention framework to identify the risks of systemically important financial institutions in advance. 

2. The Financial Conduct Authority (FCA): The FCA's regulatory targets include various financial institutions in the UK, with the aim of safeguarding consumer rights, protecting and promoting the integrity of the UK financial system, and promoting effective market competition. The mission of FCA is to conduct continuous evaluations of large companies and monitor small companies to ensure fair competition and not harm consumer interests; Respond promptly to incidents that threaten industry integrity and, if necessary, ensure compensation from the company to consumers. PRA and FCA collaborate and maintain information sharing, receiving guidance from the Financial Policy Committee (FPC). 

In addition, the UK financial regulatory system has strengthened the responsibilities and powers of the central bank, and elevated its status. The reformed Bank of England integrates monetary policy formulation and implementation, macro prudential supervision, and micro prudential supervision, and is at the core of financial regulation. However, this does not mean that all financial regulatory powers are handed over to the central bank. The FCA is a special agency independent of the central bank, responsible to the UK Treasury and Parliament, with its main head nominated by the UK Chancellor of the Exchequer. At the same time, the Ministry of Finance also plays an important role in the financial regulatory framework, such as being the only decision-making body authorized by British law to use public funds for crisis relief. 

The regulatory system in the UK ensures smooth channels of cooperation between regulatory agencies through systems, ensuring information sharing and targeted communication. For example, the CEOs of PRA and FCA serve as members of each other's board of directors to facilitate regulatory coordination. This regulatory system design aims to improve the stability and transparency of the financial system, while protecting consumer rights and promoting fair competition.