British regulators Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) have agreed to launch a new bank unit to assist challenger banks enter the market and help them operate post launch, the Financial Times has reported.
The move is part of the British government’s efforts to increase competition in the country’s retail banking space.
"It is important that new entrants to the banking sector are given the support they need to get to market. We will now be working closely with the Treasury and the PRA on the detail, which will be announced later in the year," the publication quoted FCA as saying.
The report added that the watchdogs will carry out a review of the new unit after three years.