British regulators Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) have agreed to launch a new bank unit to assist challenger banks enter the market and help them operate post launch, the Financial Times has reported.
The move is part of the British government’s efforts to increase competition in the country’s retail banking space.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
"It is important that new entrants to the banking sector are given the support they need to get to market. We will now be working closely with the Treasury and the PRA on the detail, which will be announced later in the year," the publication quoted the FCA as saying.
The report added that the watchdogs will carry out a review of the new unit after three years.
UK short term loan provider Amicus Finance is in the early stages of negotiations with the Financial Conduct Authority on seeking a UK banking licence.
Earlier this year Amicus Finance bought a majority stake in London-based asset finance brokerage, Norton Folgate Capital Group Limited, including Norton Folgate Capital Consulting LLP.
