To whom does the PRA report directly?

The Prudential Regulation Authority (PRA) reports directly to the Bank of England. The PRA is responsible for the supervision and regulation of banks, insurers, and investment firms, focusing on ensuring the safety and soundness of these institutions. As part of the Bank of England, the PRA operates under its auspices and is integrated into the broader monetary and financial stability objectives of the Bank.

The PRA's reporting structure is essential because it directly links regulatory oversight with the central bank's functions, facilitating effective communication and coordination in maintaining the stability of the financial system. This relationship allows for a comprehensive approach to regulation, combining prudential oversight with monetary policy considerations.

In contrast, the other options represent different entities with distinct roles. The Financial Conduct Authority focuses on consumer protection and market integrity but does not have a direct reporting relationship with the PRA. The Treasury is concerned with government financial policy and economic strategy but does not oversee the PRA directly. The Financial Policy Committee, while part of the Bank of England, operates independently and does not serve as a direct reporting body for the PRA.