The Prudential Regulation Authority’s approach to new and growing banks

There is a realisation by the Prudential Regulation Authority (PRA) that if competition in the banking market is to be successful over the long-term, further help is needed to guide new and growing banks as they mature. The PRA has issued a consultation focusing on non-systemic banks, where they try to do just that.

They have noticed that some banks have “underestimated the development required to become a successful and established bank”. The paper sets out the area they are most concerned about and what the PRA’s expectations will be going forward…