FSA and BoE published a “Review of the requirements for firms entering into or expanding in the banking sector”. The review considers changes to ease prudential, conduct and organisational requirements while maintaining basic standards. The changes considered include:
- reduced capital requirements at authorisation, provided that the new entrant can be resolved in an orderly fashion without systemic impact, and flexible application of the capital planning buffer;
- reduced liquidity requirements, as already achieved by removing the automatic scalar to the simplified ILAS BIPRU; and
- deciding applications for authorisation within six months, or granting a restricted authorisation so that new entrants can then more easily mobilise the required capital and infrastructure.