PRA will challenge foreign proposals asking smaller banks to hold more capital

The UK will challenge any attempt by international regulators to ask smaller banks to hold more capital against the residential mortgages on their books, Sky News reported.

The broadcaster cited a letter sent on Tuesday by the Prudential Regulatory Authority´s chief Andrew Bailey to several small lenders.

That was in reaction to a consultation paper published by the Basel Committee last week, Sky said.

As of 09:13 shares in Aldermore were rising by 6.79% to 217.9p on the back of the news and those of One Savings Bank by another 3.06% to 350.4p.