Buy-to-let lender Paragon to set up bank next year

LONDON Tue May 21, 2013 4:51am EDT

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LONDON May 21 (Reuters) - British buy-to-let mortgage lender Paragon plans to set up a bank next year, offering personal and car loans, Chief Executive Nigel Terrington told Reuters on Tuesday.

Terrington said Paragon decided to launch the new venture after Britain's financial regulator said it would relax capital requirements for new entrants to the banking sector.

"We'd already decided to pursue the consumer finance market through a banking route," he said. "At one point we were pursuing entry via an acquisition but we changed that plan to go the organic route."

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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