London, Feb 27, 2026, 13:27 GMT
- Katharine Braddick is set to step in as the Bank of England’s new deputy governor for prudential regulation, taking over as chief executive of the PRA as well.
- Braddick takes over July 1 on a five-year contract, stepping in for Sam Woods, whose term wraps up in June
- The move comes as regulators face pressure from the government to back lending and growth, without letting up on safeguards.
Britain tapped Barclays executive Katharine Braddick on Friday to take over as the Bank of England’s deputy governor for prudential regulation, handing her the reins at the Prudential Regulation Authority. “Katharine Braddick is an accomplished pro-business leader with the experience to keep our financial system safe while backing the investment and lending that drives growth,” finance minister Rachel Reeves said. Braddick’s five-year term begins July 1, succeeding Sam Woods. She joined Barclays in 2022, following stints at the Treasury, the former Financial Services Authority, and the Association of British Insurers. London South East
The PRA occupies a quietly crucial corner of finance, scrutinizing whether banks and insurers have what it takes to weather stress. It’s also behind the rules on capital buffers—the surplus cash firms are required to keep handy in case they need to soak up losses.
The new government wants regulators to put more weight on “growth and competitiveness,” but it’s treading carefully to avoid the kind of oversight failures that turned 2008 into such a costly mess.
Andrew Bailey, the governor of the Bank of England, called Katharine Braddick’s return as Deputy Governor for Prudential Regulation “very happy” news. According to the Treasury, Braddick will join key senior Bank committees. Her appointment still needs to clear pre-commencement scrutiny from the Treasury Select Committee in parliament. GOV.UK
The Treasury flagged recent moves by the PRA it claims will loosen lending restrictions and reduce bureaucracy. Among the measures: banks can now issue more high loan-to-income mortgages—meaning bigger loans compared to borrowers’ incomes—and smaller banks face lighter reporting requirements.
Woods has been in the role since 2016, playing a key part in shaping the UK’s post-crisis rules on prudential oversight. The next PRA chief faces a stack of unresolved issues, many going directly to the price of credit—everything from capital requirements for banks to just how strict oversight gets for insurers.
The watchdog keeps tabs on the UK’s top financial players—Barclays, HSBC, Lloyds, NatWest, and the large insurers. Even minor tweaks to its approach can send waves through everything from mortgage rates to the cost of business credit.
Braddick’s leap from a senior policy job at one of the country’s biggest banks straight to the regulator’s top seat is likely to spark criticism. According to the Financial Times, some see the appointment as a potential conflict of interest, warning it could pave the way for looser rules—and a deregulatory shift that might leave the UK more vulnerable when the next downturn hits. Financial Times
The first hurdle is political—and procedural. The Treasury committee gets its turn to examine the appointment before Braddick steps in on July 1. Lawmakers are expected to dig into her strategy for managing stricter resilience requirements without derailing the government’s push for growth.
