What is one major responsibility of the Prudential Regulation Authority (PRA)?

The major responsibility of the Prudential Regulation Authority (PRA) is to oversee the safety and soundness of banks, insurers, and investment firms. This role is crucial because it ensures that these financial institutions operate in a secure and transparent manner, which helps maintain confidence in the financial system as a whole. The PRA implements regulatory standards that focus on the risk management and capital adequacy of these firms, ensuring that they can withstand financial pressures and protect consumers.

By focusing on the stability and reliability of the financial institutions, the PRA plays a pivotal role in preventing financial crises that could arise from poor management practices or inadequate capital reserves. This supervision also helps to create a level playing field among firms, ensuring fair competition while prioritizing the robustness of the financial system. The protective measures fostered by the PRA ultimately contribute to the overall economic stability of the UK.

The other options do not align with the PRA's mandate. Issuing currency notes pertains to the Bank of England, while regulating tax policies falls under the jurisdiction of HM Treasury, and managing public debt is also not a function of the PRA, thus distinguishing its specific focus on the prudential regulation of financial entities.