UK watchdog study finds cautious banks ditching customers

LONDON, May 24 (Reuters) - Banks have been ditchingcustomers as they face tougher capital requirements and stricterrules to crack down on money laundering, an independent studyfor Britain's markets watchdog said on Tuesday.

The Financial Conduct Authority (FCA) commissioned the studyto look into businesses being denied acccess to banking aslenders "de-risk" in the face of new rules.

"As a result, many banks have undertaken a strategic reviewof their business and functions, often choosing to focus ontheir 'core' business," the study from John Howell & Co found.

Some banks are closing accounts for money transmissionservices, pawnbrokers, fintech companies, and charitiesoperating in geographical areas perceived to present greatermoney laundering and terrorist financing risks, it added.

De-risking seems to affect small businesses more than largeones, the study found.

The FCA said the study showed that de-risking was due tomultiple reasons with no "silver bullet" answer. (Reporting by Huw Jones, editing Caroyn Cohn)