Committee to examine ways to make entry process easier for new lenders
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Andrew Tyrie, the new chairman of the Treasury Select Committee, says he wants to remove barriers to entry for lenders.
Speaking at the British Bankers’ Association international confer-ence last week, Tyrie told the audience that he wants to promote competition in the banking sector and praised start-ups such as Tesco and Metro Bank.
Tyrie announced that the committee is launching an investigation in the autumn into how competition can be encouraged in banking.
But last week in its responsible lending consultation paper the Financial Services Authority ann-ounced plans to toughen up the rules on non-banks.
The paper says: “UK non-banks have tended to use the ’originate to distribute’ model. As this removes lenders’ exposure to credit risk, it encouraged them to weaken their lending standards.”
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