LHV Bank granted consumer credit permission by the PRA

LHV Bank has been formally granted consumer credit permission by the PRA, following a six-month application process.

The approval enables LHV Bank to expand its retail product offering, including plans to launch overdraft facilities for current account customers in 2026.

Erki Kilu, CEO of LHV Bank, said: “Receiving consumer credit permission from the PRA is a strong endorsement of the robustness of our risk management and governance frameworks. These permissions are only granted where regulators have confidence that a bank can manage credit safely, at scale and over the long term.

“This outcome reflects substantial investment in our control environment, our people and our culture. It allows us to broaden our UK retail proposition while remaining firmly focused on prudent growth and responsible lending.”

Kris Brewster, director of retail banking at LHV Bank, added: “Overdrafts are a core feature of a full-service current account, and this permission allows us to develop a competitive product designed around customer needs and transparency. Our focus will be on delivering overdrafts that are simple, fair and aligned with responsible lending principles when we launch in 2026.”