Safety rules hamper small U.K. banks

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.”

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.