An applicant needs common equity Tier 1 capital of 4.5 percent of risk-weighted assets, significantly less than the 9.5 percent required under the old rules that still apply to existing banks. The Bank of England says it will use its discretion to give startups more time than before to build the additional capital required under Basel III.
H/T Barry Ritholtz
How To Become A Bank
Infographic source: Bloomberg
