Bank of England set to decline Revolut’s application for banking licence

The Bank of England has told the Treasury that it is planning to reject Revolut‘s application for a banking licence, after a two-year campaign by Britain’s most valuable fintech company.

In March, the Prudential Regulation Authority (PRA), the bank’s licencing arm, warned the government that it expected to issue a statutory warning letter to Revolut within a few weeks.

It said that the company’s first application would be denied due to worries about its balance sheet, after the issuance of a qualified audit opinion in late accounts the same month. According to Revolut, auditors were concerned about revenues rather than the balance sheet.However, it is thought that the warning letter was not delivered, and urgent conversations are currently taking place behind the scenes in an attempt to save the licencing application.

There is evidence that the government is becoming increasingly upset with regulators’ treatment of enterprises in developing areas, leading to charges that Britain is a hostile environment for entrepreneurs.

According to The Telegraph, the PRA warned…

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