Vanquis Banking Group's total capital requirement is reduced by more than a third
The Bradford-based group, which was previously known as Provident Financial, has been repositioned as a specialist banking group focused on lower risk customers.
Vanquis Banking Group has published an update regarding its capital
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Hide Adrequirements. The statement said: “The Prudential Regulation Authority (PRA) has concluded its Capital Supervisory Review and Evaluation Process (CSREP) of the group’s capital requirements, based on the Internal Capital Adequacy Assessment Process (ICAAP) undertaken during 2022.
“The outcome is that the group’s total capital requirement (TCR) has reduced by more than a third, from 18.3 per cent to 11.9 per cent. Including the current regulatory combined buffers of 3.5 per cent (capital conservation buffer of 2.5 per cent and countercyclical buffer of 1.0 per cent), the group’s overall capital requirement has reduced by 6.4 per cent from 21.8 per cent to 15.4 per cent.
“The reduction in capital requirements will support the group’s focus on organic loan book growth, which is further supported by the receipt of a large limit waiver from the PRA in November 2022, providing access to retail deposit funding for the group’s vehicle finance business.”
The group will provide a further update on its capital management
framework with its full year results on March 31, 2023.