PRA removes deposit restrictions from Recognise Bank
The Prudential Regulation Authority (PRA) has removed deposit restrictions from Recognise Bank, making it one of only a few banks to receive full authorisation without restrictions since the start of the pandemic.
Financial Services Compensation Scheme (FSCS) protected savings products for personal savers are due to be launched this week, while business savings accounts will follow later in the year.
The announcement follows a successful £14m investment round last month, bringing total investment to £54m.
Jason Oakley, chief executive of Recognise Bank, said: “This is a magic moment for Recognise Bank and the culmination of a three-year journey to build a new bank and provide much-needed support to the UK’s SMEs who have been increasingly let down by the mainstream banks.
“We have stuck to our plans and ambitions to be a fully regulated bank, and while other new entrants have either stumbled or fallen, Recognise Bank is already working with SMEs in the regions, lending and supporting their business ambitions.
“While the lifting of deposit restrictions is a successful milestone for the bank, it also marks the start of our next exciting phase.
“We can now offer savings accounts for personal savers, as well as business customers whose savings needs have been completely ignored by the big banks for years.”