The new lending rules aimed to reform the U.K. banking sector are hurting small lenders who find themselves at a disadvantage compared to their bigger rivals.
These rules insist banks use their loan databases to create internal models to measure the riskiness of individual loans, reports FT.com.
Compliance to these rules is rewarded with lower capital requirements. However, new and small players with no such database are “hit with higher ‘standardised’ requirements.”
Also read:
The proportion of women CEOs in the CSA's sample remains 5%, as in the past three annual reports
BMO tops equity league tables, RBC leads debt rankings
Industry watchdogs can't "sit in an ivory tower" as they push for industry change, said Stan Magidson
Clients satisfied with advisors, despite fewer fee and suitability discussions
Help clients get the maximum benefit from these accounts
Laurentian Bank has announced further executive shifts following its leadership change earlier this month
Ontario court allows U.S. shareholders to pursue both cases
Report finds the technology is being used to segment clients and generate insights