Second, an operationally independent subsidiary of the Bank, the Prudential Regulation Authority (PRA), will be responsible for day to day supervision of financial institutions that manage significant risk on their balance sheet. Third, a new specialist regulator, the Financial Conduct Authority (FCA), which will have responsibility for conduct of business issues across the entire spectrum of financial services.
Second, even with the ongoing monetary and fiscal policy support, our recovery is expected to be slow and incomplete in terms of both growth and inflation. In fact, the euro area economy is projected to return to its pre-crisis GDP level only in the middle of 2022 and to remain below its pre-crisis trend (Chart 9, left panel).