A freedom of information request submitted by Bridging & Commercial revealed the number of banking licence applications made to the Prudential Regulation Authority (PRA) during this period.

Bridging & Commercial was also told by the PRA that since the beginning of 2012, 45 banking licence applications had been made by firms wishing to offer banking services.

Both the PRA and the Financial Conduct Authority (FCA) – as well as its predecessor the Financial Services Authority – are responsible for the dual regulation and authorisation of new banks. 

Firms must submit banking applications to the PRA, but these are assessed by both the PRA and the FCA.

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A number of lenders were drawn to the banking market during 2016, including specialist lenders, Amicus Finance and Private & Commercial Finance, which submitted applications for a banking licence.

In November 2016, peer-to-peer lender Zopa announced it would also be applying for a banking licence with the regulatory process expected to take 15-24 months.

Interestingly, in November, another freedom of information request submitted by Bridging & Commercial found two firms had abandoned their banking licence applications since March 2016.

The PRA revealed that between March and October 2016 it received eight applications, with six being approved.

BFC Bank, Masthaven, Starling Bank and Monzo all received approval for banking licences during 2016.