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Rule changeFinanceUKConfirmed

Bank of England’s PRA sets five model risk principles for banks, covering AI models

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Source: Bank of England

The Prudential Regulation Authority published supervisory statement SS1/23 on 17 May 2023, setting five principles for model risk management at UK banks, building societies and PRA-designated investment firms with internal model approval. A sub-principle covers the use of artificial intelligence in modelling techniques such as machine learning, and the statement took effect on 17 May 2024.

Why it matters

UK banks with internal model approval gained a dated supervisory expectation to govern, validate and inventory models, with machine learning models brought inside the same model risk regime.

When
17 May 2023
ID
WTA-N-2023-0160
Who
Prudential Regulation Authority, Bank of England

Summary by wheresthe.ai, from Bank of England. Checked against the source on 9 Oct 2026.

Read the original at Bank of England

Source copy: download the page as saved on 18 Oct 2026 (PDF). Documents the source offers: document 1 (PDF), document 2 (PDF). Also held by the Internet Archive.

Next stop on this Storyline: What happened nextUK financial regulators publish industry feedback on AI and machine learning

Cite this story

WTA-N-2023-0160: “Bank of England’s PRA sets five model risk principles for banks, covering AI models.” wheresthe.ai, 17 May 2023. https://wheresthe.ai/d/gb-pra-ss1-23-model-risk-management-2023-05/ (source: Bank of England).

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