Regulators in the UK are scrutinising the latest round of Basel regulations, the global regulatory overhaul prompted by the financial crisis.
Concerns have been raised that the approach taken by the UK could squeeze credit supply and raise the cost of small business lending.
Richard Davies, chief executive of Allica Bank, told City A.M. that the new regulations would increase capital requirements in the sector by around a third and would “fundamentally change the market if they go ahead”.
