Tesco may be a formidable competitor in the supermarket wars, but when it comes to banking it’s more of a weakling. The admission by its Tesco Bank division yesterday that it would no longer offer home loans because market competition was too fierce adds to the view that small lenders are buckling under the double whammy of regulations and huge funding advantages for big banks. Yet it is not all sunshine and light for large lenders, either. In the short term, the pain of Tesco and other small players in the mortgage market is plain to see, but on the horizon are sweeping changes that are set to change the economics of mortgages, with a big knock-on effect on the likes of Lloyds, Barclays and…

Source: The Times May 21, 2019 16:18 UTC