Supermarket giant Tesco's plan to march into the home loans business this autumn is facing a severe delay: the grocer has yet to receive permission from the City watchdog to offer mortgages.
Tesco's new banking arm had hoped to launch mortgages before Christmas, followed by current accounts next year, writes the Guardian.
However it is understood that the supermarket could be bogged down in red tape for up to 12 months.
The FSA has toughened up its rules in the wake of the credit crunch, which claimed high-risk lenders such as Northern Rock and Bradford & Bingley, and is keen to make sure any new entrant is copper-bottomed.
Commission kills hopes of Lloyds or RBS sell-off
Hopes that the taxpayer might soon see a return from the billions pumped into Lloyds Banking Group and RBS have been all but written off thanks to the launch of the Banking Commission.
UK Financial Investments is understood to have all but ruled out any attempted sale of the Government's stakes beyond a small "test the water exercise", according to the Independent.
Leading bankers are understood to have given warning that even this may prove impossible because of uncertainty over the shape of the industry created by the Commission, not least the chance that the 41% state-owned Lloyds could be broken up.
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