Small banks in the UK can benefit from simpler regulations post-Brexit boosting competitiveness in the sector, said the Bank of England (BoE).

BoE deputy governor Sam Woods said that currently the central bank is assessing the steps taken by the US and Swiss regulators to relax banking regulations for smaller banks.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

However, he also noted that BoE is committed to keep banking safe and any step taken will seek to increase competition in the sector.

Currently, the country’s banking system is guided by the EU financial regulations. The UK is scheduled to leave the EU on 29 March 2019.

Woods said: “There may be a reasonable case that a simpler — simpler not weaker — regime for small firms would advance both our safety and soundness and competition objectives.

“It is impossible to know at this stage, but under some Brexit outcomes we might have room to revisit this question for small domestic firms.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The UK retail banking sector is largely dominated by four banks including Barclays, Lloyds, RBS and HSBC.

In the last five years, the central bank had authorised 17 new lenders. However, none of them have emerged as a challenger to the ‘Big Four’.

Deputy Governor Woods attributed the reluctance of the customers to switch accounts as one of the reasons why the sector continues to be dominated by these four banks.