DP26/1: Credit unions: review of the regulatory regime

Read DP26/1[2]

Why we are publishing this Discussion Paper

The PRA and FCA are not proposing or committing to any specific policy changes at this point, but this paper explores whether:

• The current prudential framework remains appropriate across a sector that has become increasingly diverse.
• There are opportunities to support competition, innovation and the long-term sustainability of the sector.
• The current framework provides appropriate support and safeguards in certain areas.
• Credit unions have adequate tools to exit the market in an orderly manner.

We’re interested in hearing views on specific areas of the regulatory framework as well as how different approaches may operate together to support the sustainable development of the sector.

Who this is for

• Credit unions based in Great Britain and Northern Ireland.
• Credit union members.
• Credit union service organisations.
• Credit union trade associations.

Next steps

The deadline for views is 5 March 2027. Send your responses to [email protected].

Background

Credit unions serve more than 2 million members, providing a range of financial services centred primarily on savings and lending. The sector has become more diverse with some firms having grown significantly in size and complexity.

In the Mutuals Landscape Report[3], the PRA and FCA committed to working with the credit union sector to review its current position and trajectory in more detail and consider the longer-term evolution of its regulatory framework.

This Discussion Paper forms part of that commitment.