Paragon boss eyes fresh acquisitions

THE boss of Paragon Banking Group has acquisitions in mind after the lender received a major tailwind from regulatory reforms this year.

- Samuel NORMAN

Nigel Terrington has said the loosening of banks’ capital requirement rules, known as MREL (minimum requirement for own funds and eligible liabilities), will open up further growth prospects for mid-cap lenders.

The boss of the FTSE 250 lender had been one of the most vocal critics of the current threshold and has previously said that changing the threshold would allow mid-tier banks to “do even more to power the UK’s economic future”.

Introduced in the fallout of the 2008 financial crisis, MREL rules dictate strict tailored requirements for banks possessing assets between £15bn-£25bn and act as a regulatory buffer to ensure lenders can be safely resolved in a crisis without taxpayer bailouts.