UK watchdog plans full retail bank competition probe
The Competition and Markets Authority (CMA) said today there was a lack of competition among banks and proposals lenders put forward to increase transparency and make it easier to switch did not go far enough to meet the needs of personal consumers or small and medium sized enterprises (SMEs).
The CMA can order structural remedies, such as breaking up banks considered too dominant, and behavioural remedies, such as improving information given to customers.
Advertisement
Hide AdAdvertisement
Hide AdState-backed banks Lloyds Banking Group and Royal Bank of Scotland are the biggest banks for both personal current accounts and SME banking, and could come under pressure to reduce their market share.
The CMA had been expected to launch a full probe into SME banking, but it was less certain it would propose a wide-ranging investigation of current accounts.
It said it will make a final decision in the autumn and has given banks and other market participants until September 17 to submit their views.