Last year, Nationwide building society revealed plans to enter the SME loans market. This was great news for the SME who has struggled to get finance as the banks lose their appetite for lending.

Unfortunately, after examining their balance sheet, the Prudential Regulation Authority has demanded that the Nationwide bolster their leverage ratio.

A spokesman for the Nationwide said, “We have previously said that it is our strategic intention to enter the SME banking market and that we will do this at the right time for the society and our members. That remains our intention.”

However they are now unlikely to launch a full SME service before 2016.

Read more about it here in the Yorkshire Post.