You know what would have made the financial crisis even more exciting? A proliferation of smaller British banks begging for a little help or full-on nationalization. In any event, the FSA is apparently going to keep busy right up until the moment that George Osborne shuts the lights.
Under the revised rules, new entrants will be required to hold significantly less capital than before and benefit from a simplified regulatory approval process, the Financial Services Authority and Bank of England said in a joint statement….
Regulators said Tuesday that new banks will need to hold 4.5% in equity capital against assets, less than the roughly 10% levels required at the country’s major banks, and the lowest level possible under coming international rules known as Basel III. The previous rules often resulted in capital requirements for startups being higher than for existing banks, the FSA said.