Call to assist new UK banks
COMPETITION in banking would be helped if small lenders did not face unnecessary burdens, the boss of the British Bankers’ Association will say at a conference today.
Anthony Browne wants rules to be changed to allow challenger banks to accept deposits from local councils – giving them access to a £30bn pool of deposits – and easier capital rules.
Current rules make it more expensive for a small bank to lend as they must hold more capital against loans than bigger banks do.