Allica Bank, the leading fintech SME challenger bank, is urging the Prudential Regulatory Authority (PRA) to consider changes to proposed new bank capital rules to ensure small businesses have access to finance and the UK’s SME challenger bank sector continues to thrive.
In November 2022, the PRA published a consultation paper outlining its proposed approach to implementing the final elements of the Basel international banking standards, known as Basel 3.1. The consultation contains proposals to materially increase the level of risk-weighting banks would need to apply to SME lending.
