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Matching adjustment: PRA note clarifies and criticises equally

UK regulator sets out cashflow needs, but restates old concerns

Bank of England

In its second letter to the industry inside a month on the matching adjustment, the UK's Prudential Regulation Authority (PRA) carried on the theme from its previous note, on equity release assets – encouraging and admonishing in roughly equal measure.

"The letter is strongly-worded, a bit like a note from the headmaster," says one UK banker. "But it does set the boundaries within which firms can

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