Bank of England to help out new banks

The Bank of England is proposing to allow new banks to hold less capital from next January to help them win market share from the ‘Big Four’ lenders.

The BoE’s Prudential Regulation Authority (PRA) published proposals to “refine” its system of ‘Pillar 2A’ capital requirements add-ons that top up the minimum requirements all lenders must hold. The PRA said the consultation is a major step forward in facilitating competition.