Tesco’s plan to launch a lending arm could be delayed by up to 12 months due to the FSA’s current tougher line on authorisations.
The supermarket had originally planned to launch its new lender, Tesco Bank, this autumn but the Guardian says it has yet to receive FSA authorisation.
The report says the delay is due to the regulator toughening up its rules in the wake of the financial crisis.
Tesco told the Guardian: “The FSA is just being careful. It has a new process and it is very difficult.”
Tesco will announce its company results tomorrow and is expected to report a 10 per cent increase in first-half profits to £1.7bn.