The fresh bid, Sky News reported, will be led by banks such as Aldermore, Secure Trust Bank, OneSavings Bank (OSB) and Shawbrook. The banks are said to be hoping for more assistance in helping them to compete with their larger counterparts, now that George Osborne has been replaced by Philip Hammond as Chancellor.
Their goal is to push forward their call for a more proportionate approach to regulation, according to a letter sent to Andrew Tyrie MP, chairman of the Treasury Select Committee, in July. The banks want to secure terms which they feel are tailored to the models of smaller banks and building societies once the UK leaves the European Union.
A lobbying party of seven challenger banks wrote to Tyrie following the UK’s vote to leave the EU on 23 June, asking for reformation of the capital requirements. They believe the government and the Bank of England now have the freedom to choose which parts of EU legislation they want to keep and which ones they want to change. This action will help them to be more competitive and provide more credit to the economy, they added.
In Tyrie’s response he wrote: “Brexit poses risks; it may also create opportunities. Current EU legislation could be placing smaller banks at a disadvantage. This is because it risks imposing a ‘one size fits all’ approach to banking regulation.
“The Bank of England and the government both now need to consider whether the opportunity afforded by Brexit could enable the development of a regulatory regime less prejudicial to small and challenger banks.”
OSB confirmed it was attending the meeting at the Treasury. The Treasury was unavailable to comment.