An effective process for authorising new banks is crucial for an efficient and well-functioning financial system. Robust controls around the creation of new banks give confidence that they are trustworthy places for people’s money. But it is also important, from a competition perspective, that authorisation requirements for new banks are not unduly burdensome and do not discourage firms that meet the appropriate standards from entering the market. In the UK, responsibility for authorising new banks is split between the PRA and the FCA. The PRA decides whether to authorise a new bank but can only do so if the FCA ... (full story)