City of London Group PLC (LSE:CIN) said its subsidiary Recognise Bank Ltd will be able to launch its personal and business savings products and to start taking deposits after the UK financial services regulator lifted the bank’s deposit restrictions.
Recognise Bank will launch personal savings products, protected under the Financial Services Compensation Scheme (FSCS), tomorrow and plans to launch business saving products at a later date.
“We have completed the final step on the journey to becoming a fully authorised digitally led bank which has been our primary objective for three years,” said Philip Jenks, chairman of City of London Group (COLG) and Recognise Bank.
AIM-traded COLG announced the sale of Milton Homes Ltd last month and completed a capital raise to meet the capital requirements for the regulator, Prudential Regulation Authority, to remove restrictions on deposits.
The new capital and funds from the deposit taking products will enable Recognise Bank to increase lending to the UK's small and medium sized businesses.