New UK laws could alter international banking

Entrepreneurs looking to expand their business presence across the pond may need to note the changing laws that could impact their presence and banking options in the United Kingdom. While investors may be well-versed with banking trends and regulations at home, having a firm grasp on international banking options overseas is essential to any expanding firm looking to grow in foreign markets.

New legislation may regulate UK banks soon
€‹
Finance minister George Osborne has announced new regulations to ensure large banking institutions will be broken up if they fail to comply with risky investment guidelines and regulations. This new rule aims to protect taxpayers from having to bail out large banks, as they did during the 2008 financial crisis when the government used £65 billion to prop up some of the largest banks. New regulations also aim to ensure day-to-day banking operations are strictly separated from potentially risky investment divisions.

If the Bank of England finds an institution violating these rules, it can make the final decision to enforce policies that it deems will protect both the bank and taxpayers. Some of the main concern of banking officials is the future of British banks and what future regulations could hinder business growth and lending capabilities. Osborne also looks to give the Bank of England increased oversight capabilities and regulatory powers. 

More importantly for business owners, the reforms will also allow bank customers to switch to another financial institution of their choice with a week, according to BBC News, making it easier for small businesses to access new accounts and banking systems without delay.

"Our country has paid a higher price than any other major economy for what went so badly wrong in our banking system," said Osborne. "The anger people feel is very real. Let's turn that anger from a force of destruction into a force for change."

The legislation has gone to Parliament, and it is anticipated it will be passed within a year.

Concerns for business owners
While some entrepreneurs may assume new international banking rules don't play a significant role in their operations, this attitude could be detrimental to their company processes. Business owners who don't take note of changing regulations and banking processes may find themselves in trouble when working with a large institution that fails to comply with new legislation.

For this reason, expanding companies should look to work with banks experienced in overseas rules and regulations and that can comply with both local requirements, cater specifically to small enterprise needs and help ensure a growing firm is able to access business financing.

Content presented by Bridge Bank, offering flexible, customized solutions for entrepreneurs.

Getting Started

Find your ideal banker:

Select any filter and click on Apply to see results

Featured Insights

Success in the world of biotechnology and life sciences requires a level of patience that is foreign to most types...

A new report released by KPMG International and CB Insights said...

Startup accelerator Y Combinator is known for its innovative model in providing...

Beginning June 24, 2016, the Small Business Administration will start accepting...

In the continued trend of...

According to venture capitalist Bryce Roberts, traditional venture capitalism...

The mobility services landscape has been developing quickly, with ride-hailing...

Venture capital firm Y Combinator, which many call the world's most powerful...

Healthcare has been slower than other industries to adopt digital technologies....

HP Inc., a company that stemmed from the division of Hewlett-Packard, recently...

Recent News

07/25/16
Durham, NC -- July 25, 2016 -- Bridge Bank’s Life Sciences Group (LSG) today...
07/21/16
San Francisco, CA -- July 21, 2016 -- Bridge Bank’s Life Sciences Group (LSG) today...
07/01/16
MONMOUTH JUNCTION, N.J, July 1, 2016 - CytoSorbents Corporation (NASDAQ: CTSO), a...
06/23/16
SUNNYVALE, CA -- 06/20/16 -- Viveve Medical, Inc. ("Viveve") (NASDAQ: VIVE), a...
06/21/16
New Office on Famed Sand Hill Road Furthers Bridge Bank's Commitment to Serving...
06/01/16
Oakland, CA – June 1, 2016 – Bridge Bank today announced the recent hiring of...
05/23/16
New Office Located in the Historic Russ Building Expands Bridge Bank’s Offering SAN...
05/04/16
Ruvalcaba Receives 2016 Character Award San Jose, CA – May 4, 2016 – Bridge Bank...
04/28/16
San Jose, CA – April 28, 2016 - Bridge Bank and Trinity Capital Investment, a...
04/01/16
SOUTH SAN FRANCISCO, Calif., April 01, 2016 -- Sunesis Pharmaceuticals, Inc. (Nasdaq...

Twitter

Featured Insights

Featured Insight

Success in the world of biotechnology and life sciences requires a level of patience that is foreign to most types...

Featured Insight

Valuations in the venture capital (VC) market are either in decline or flattening out, primarily due to inflated...

Featured Insight

Financial institutions operate at the heart of our economic system and as such, are hyper-aware of market indicators...

Recent News

A new report released by KPMG International and CB Insights said...

Startup accelerator Y Combinator is known for its innovative model in providing...

Beginning June 24, 2016, the Small Business Administration will start accepting...

Twitter