Total Capital Requirement reduced at rebranded lender

Specialist banking group, Vanquis, has today confirmed that its Total Capital Requirement (TCR) has reduced by more than a third.

The Bradford-based group, which rebranded from its previous name – Provident Financial – when it repositioned itself to focused on lower risk customers, says the Prudential Regulation Authority (PRA) has concluded its Capital Supervisory Review and Evaluation Process (CSREP) of the group’s capital requirements.

This was based on the Internal Capital Adequacy Assessment Process (ICAAP) undertaken during 2022.

Vanquis says the outcome is that its Total Capital Requirement has dropped from 18.3% to 11.9%.

Including the current regulatory combined buffers of 3.5% (capital conservation buffer of 2.5% and countercyclical buffer of 1.0%), the group’s overall capital requirement has reduced by 6.4% from 21.8% to 15.4%.

Vanquis explains: “The reduction in capital requirements will support the group’s focus on organic loan book growth, which is further supported by the receipt of a large limit waiver from the PRA in November 2022, providing access to retail deposit funding for the group’s vehicle finance business.”