LONDON (Reuters) - Start-up banks in Britain won’t need as much capital as their established rivals, the Financial Services Authority said on Tuesday in a new policy move to boost competition.
Under pressure from MPs to increase choice on a high street dominated by four banks, the FSA unveiled changes to speed up authorisation of new entrants.
There will also be lighter capital requirements in the first three years as long as the bank can show that deposits are insured and the firm can be wound up easily without destabilising markets.
There will also be reduced liquidity requirements, the FSA said in a statement.
Reporting by Huw Jones, editing by Matt Scuffham