The FCA has published an evaluation paper on reducing barriers to entry into the UK banking sector. In its paper, the FCA evaluates the impact that the 2013 reforms to the authorisations process and a shift in approach to the prudential regulation of banking start-ups, has had on firms.
Key findings from the evaluation include:
- there is a more efficient authorisations process;
- the rate of entry into the UK banking sector is higher than before the 2013 review;
- the increase in entry has in turn led to a greater range of product offerings in the retail market and benefits for consumers; and
- there has not yet been a substantial change to concentration in the retail banking sector, nor has the FCA got evidence of significant competitive responses by incumbent banks.