Mid-tier banks have long faced regulatory hurdles that hinder growth, especially the minimum requirements once a lender’s assets reach £15-£25bn. Thankfully that’s about to change, but that should be just the start of reforms, says Nigel Terrington

Each week, my commute to Paragon’s Solihull headquarters takes me past HS2 construction sites, bustling with heavy machinery and equipment. These assets, essential to the UK’s largest infrastructure project, are often financed by institutions like Paragon or our fellow mid-tier banks – those operating just below the high street giants.

HS2 is a powerful illustration of how mid-tier banks underpin economic growth. Nearly two-thirds of the 2,700 suppliers involved are SMEs, many of whom rely on our sector for funding. We provide capital where larger banks often hesitate, whether due to lack of interest, expertise or a strategic retreat from certain markets.

A 2023 EY report revealed that mid-tier banks were responsible for 60 per cent of SME lending last year, totalling £35bn. While this is a substantial contribution, it also highlights the untapped potential within our segment. The Chancellor has rightly........

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