Challenger Banks call for more support from Chancellor

Challenger banks have welcomed moves to allow them to operate with lower capital than their larger “too big to fail” banking rivals. 

Chief Executive of Secure Trust has been reported to have said that small banks need to get bigger and take business away from the bigger banks believing it is the only way in which the taxpayer will be off the hook for bailing out ‘too big too fail’ banks in the future.

As a result, it was positive to hear George Osborne respond saying he would push Europe for a more proportionate treatment for the capital required for smaller banks.

Some challenger banks are also optimistic that the delay to the Competition and Markets Authority’s long-awaited report into retail banking signals that the regulator is preparing to make much stronger recommendations on helping challenger banks.  Only time will tell.

Others have been more sceptical suggesting that separating the big banks is very difficult.