LONDON: The Bank of England said on Wednesday it wants to help smaller banks compete better in mortgages, a sector long dominated by Britain's big lenders.

Sarah Breeden, the BoE's executive director for UK Deposit Takers Supervision, said many of the new banks authorised since 2014, seem to have underestimated what is needed to become successful.

"We are considering, in particular, whether there might be scope to introduce a new regime for smaller banks following Britain's departure from the European Union," Breeden said in a speech released on Wednesday.