Sam Woods looks at the barriers to growth for small banks and credit unions. He says these barriers can be a result of complex regulatory rules and ‘cliff-edge’ thresholds. And he explains what the Prudential Regulation Authority is doing about them.
During his speech, Sam launches a consultation on capital requirements for credit unions. He says the PRA would like to simplify capital requirements and remove threshold cliff-edges. The aim of these changes is to improve the financial resilience of smaller credit unions, which are more likely to fail.
