On 7 July 2014, the PRA and the FCA published a joint report update on the review of requirements for firms entering the UK banking sector. The report is an update of steps that the regulators have taken following the review of the authorization process and the prudential and conduct requirements for new bank applicants published by the FSA and the Bank of England in March 2013. The PRA and FCA joint report set out how the PRA and FCA have implemented the changes proposed in 2013 and states that: (i) capital and liquidity requirements for new applicants that are deemed resolvable with no systemic risk are now lower;
- a new mobilization option has been developed which assists new entrants obtain restricted authorization whilst putting infrastructure and controls in place;
- increased pre-application support from both regulators; and (iv) a streamlined application pack. The report announces that there has been a substantial increase in the number of firms considering establishing a new bank.
The joint report is available at: