Helping hand for new banks to emerge
In his Budget, Chancellor George Osborne said action to remove barriers to enter the banking market had been successful, with 25 applicants seeking a banking licence, compared with only six in March 2013.
It was also announced that there would be new consultation on legislation to help match SMEs (small and medium-sized enterprises) who are turned down for a loan with alternative lenders in order to broaden the sources of finance available to small businesses.
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Hide AdThere is speculation that smaller lenders such as Aldermore, which employs 35 staff at its base in Cleckheaton, are gearing up for an initial public offering (IPO).
A spokesman for Aldermore said: “Aldermore raised £40m of new capital in December. The deal also established a wider dialogue with institutional investors as we continue to review its capital market strategy which may, among other strategies, include an initial public offering.”