What is the main goal of the PRA's general objective?

The main goal of the Prudential Regulation Authority (PRA) is to promote the safety and soundness of PRA-authorized firms. This objective is crucial because it ensures that financial institutions operate in a manner that maintains stability in the financial system and protects consumers. The PRA focuses on the resilience of banks, insurers, and investment firms to withstand financial stress and prevent failures that could have widespread repercussions on the broader economy. By promoting safety and soundness, the PRA aims to ensure that these institutions are well-capitalized, manage risks effectively, and have robust governance frameworks in place.

The other options do not align with the primary objectives of the PRA. Encouraging aggressive market competition, while potentially beneficial in certain contexts, does not directly address the need for systemic stability. Likewise, maximizing profits for financial institutions is not a regulatory goal; instead, focusing on safety and soundness often means prioritizing long-term sustainability over short-term profits. Lastly, minimizing customer fees is an important consideration for consumers, but it is not a core regulatory focus of the PRA, which is primarily concerned with the financial health and operational integrity of firms rather than customer pricing.