Axis Bank, Union Bank authorized to enter UK market
The two Indian banks were among five new entrants in 2013-14 after UK relaxed regulatory barriers
London: Two Indian firms—Axis Bank Ltd and Union Bank of India—are among five new banks authorized to do business in the UK during the last fiscal, as per latest statistics released by UK regulators.
The five banks authorized between 1 April 2013 and 31 March 2014, following changes introduced by UK regulators to reduce barriers for entry of new financial institutions, are Axis Bank UK Ltd, Union Bank of India (UK) Ltd, FCMB (UK) Ltd, UBA Capital (Europe) Ltd and Paragon Bank Plc.
Other Indian banks present in the UK include ICICI Bank Ltd, State Bank of India, Bank of Baroda, Canara Bank, Syndicate Bank and Bank of India.
As many as 30 new banks could open in the UK following the regulatory changes. There has been a substantial increase in the number of firms discussing the possibility of becoming a bank with the regulators, an official release said, adding that in the twelve months to 31 March 2014 they held pre-application meetings with over 25 potential applicants.
Last April, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) had put in place certain changes to reduce the barriers to entry for new financial institutions in order to enable increased competition in the banking industry and to benefit of customers.
The changes focused on two key areas: simplification of the authorization process for new banks; and a major shift in prudential regulation, such as capital requirements, for new entrants.
“It is clear that the changes introduced last year have been positive for new entrants and will make a contribution to increasing competition and thus benefit customers," Andrew Bailey, chief executive of the PRA, said.
Martin Wheatley, chief executive of the FCA, said: “The changes will ultimately offer consumers greater choice and encourage innovation. I’m keen we maintain this progress, and want to see greater competition in retail banking work for the benefit of consumers."
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