> before us only a handful of new banks had been created since Metro bank, and that was the first in 125 years..

I think thats the point of this push by the Bank Of England. UK high street banking was dominated by a handful of huge, old, banks that had to be bailed out during the 2008 banking crisis because pretty much the entire population used them. A larger number of smaller banks reduces the moral hazard around "too big to fail" banks, allows management who cause a bank failure to lose their jobs, their share options, and their company, and reduces the chances of the government having to nearly bankrupt itself to bail them out.

Plus if London wants to continue to be a world centre of finance then encouraging innovative new banks to base there cant exactly do any harm.