3rd March 2017

BBA responds to Martin Stewart, PRA, announcement at BBA conference ‘The Challenger and Specialist Banks’ Landscape in the UK’

BBA Chief Executive Anthony Browne has responded to comments by Martin Stewart, Director of Banks, Building Societies and Credit Unions, Prudential Regulation Authority, at BBA Conference ‘The Challenger and Specialist Banks’ Landscape in the UK’ taking place this morning, Friday 3 March 2017.

BBA Chief Executive Anthony Browne said: “The PRA’s move to a level playing field is a welcome ‘shot in the arm’ for competition in banking. We have long argued the present capital regime reduces competition in the market and harms customers, because it often requires challenger banks to hold several times as much capital as larger banks for making the same loan. This concern was raised by the Competition and Markets Authority report last year and was also cited in the PwC Challenger Bank report as being one of the key structural hurdles that challenger banks must overcome. This more holistic approach to capital calculation, by refining the Pillar 2 process, helps clarify the regulator’s expectations of banks that wish to move from a standardised approach to using internal ratings based models for credit risk capital calculation.”

ENDS

For more information please contact the BBA press office on 020 7216 8989.