Alliance & Leicester says it has become the first UK bank to comply with Basel II regulations.
Basel II, which imposes regulatory capital requirements to lending risks, will be imposed upon most lenders next year but smaller banks and building societies are looking to comply now.
Only Norwich & Peterbrough and A&L have so far been given the go-ahead by the Financial Service Authority, which has to grant a waiver from Basel II’s standard requirements now, before banks can enjoy it’s full benefits next year.
David Bennett, group finance director at A&L, says: “The approval from the FSA is good news.
“We continue to expect to be a beneficiary under the new Basel II rules, reflecting our high-quality balance sheet and responsible lending policies.”