The Bank of England’s Director of Prudential Regulation, Ruth Smith, has written to chief financial officers of major UK banks outlining preparations for the third Resolvability Assessment Framework (RAF) assessment. Published on 2 February 2026, the letter emphasizes the importance of resolvability frameworks in ensuring the financial system’s resilience. It highlights collaboration with the Financial Conduct Authority (FCA) to refine assessment methodologies and address emerging risks. The RAF assessments aim to evaluate banks’ ability to resolve failing institutions without disrupting financial stability. Smith urged institutions to review their preparedness, including stress testing and resolution planning, ahead of the assessment timeline. The letter underscores regulatory efforts to strengthen systemic risk management across the UK banking sector.
© Governor and Company of the Bank of England.
Summary adapted from the Bank of England website (https://www.bankofengland.co.uk ).
https://www.bankofengland.co.uk/letter/2026/letter-from-ruth-smith-on-firms-preparations-for-the-third-raf-assessment
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