Search This Blog

Saturday 19 July 2014

UK banks face full CMA competition probe

BBC News

Markets watchdog the Competition and Markets Authority (CMA) has recommended a full competition inquiry into banks.

The provisional decision recommends a full-scale inquiry into the banking sector including the provision of current accounts and business lending.

The process will start with a consultation, and the CMA will take a final decision in the autumn.
The banking industry said it would co-operate with the review, but that changes were already underway. 

Alex Chisholm, CMA chief executive, told BBC Radio 4's Today programme it was "vital" that the banking sector worked properly, which was why the full eighteen month investigation was being proposed.

"There are a lot of under-satisfied customers out there, and small businesses are saying they are not happy”

"At the moment they don't seem to be doing a good job of satisfying their customers," he said.

"There are a lot of under-satisfied customers out there, and small businesses are saying they are not happy," he added.
The CMA said:
  • many customers saw little difference between the largest banks in terms of the services they offer.
  • the number of consumers shopping around and switching between banks remained low - just 3% a year for personal accounts.
  • current account overdraft charges were found to be very complex, making it harder for bank customers to choose the cheapest or most appropriate accounts.
  • free banking may be distorting competition.
  • it was still difficult for newer and smaller "challenger" banks to get into the industry, particularly in Scotland and Northern Ireland.
Read more
 

No comments:

Related Posts Plugin for WordPress, Blogger...