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| Version 1 | Version 2 |
|---|---|
| UK banks to face competition inquiry | UK banks to face competition inquiry |
| (35 minutes later) | |
| A full competition inquiry into the market for current accounts and small business banking has been launched by the Competition and Markets Authority. | A full competition inquiry into the market for current accounts and small business banking has been launched by the Competition and Markets Authority. |
| The probe, first proposed in July, will investigate the difficulties customers face in switching banks, and the lack of smaller competitors to the "big four" High Street names. | The probe, first proposed in July, will investigate the difficulties customers face in switching banks, and the lack of smaller competitors to the "big four" High Street names. |
| It will also look at lending to small and medium-sized businesses. | It will also look at lending to small and medium-sized businesses. |
| Some large banks said the probe was unnecessary. | |
| In a submission to the CMA, Barclays said it felt the review was "not appropriate at this time". | |
| "Various developments, innovations and stimuli are changing the competitive landscape in in relation to both [personal current accounts] and [small and medium enterprises] banking, and these must be given time to mature," it added. | |
| Lloyds Bank, which is still partly owned by the taxpayer, said that although it would work with the CMA, it did "not consider that such a reference is necessary", while HSBC said it was concerned that the CMA has previously "taken a backward looking view" of both current accounts and small business lending. | |
| But the BBA, which represents the banking sector, said the industry would "co-operate fully with any investigation". | |
| "Banks are pro-competition - they compete for business every day," said BBA boss Anthony Browne. | |
| Business group the British Chambers of Commerce said it welcomed the review. | Business group the British Chambers of Commerce said it welcomed the review. |
| "For many years Britain's dysfunctional banking sector has struggled to meet the needs of [small and medium enterprises], impeding the growth prospects of some of our most promising young companies." | "For many years Britain's dysfunctional banking sector has struggled to meet the needs of [small and medium enterprises], impeding the growth prospects of some of our most promising young companies." |
| After carrying out a consultation with members of the public, banks and other industry bodies, the CMA outlined four main concerns about banking services in the UK: | After carrying out a consultation with members of the public, banks and other industry bodies, the CMA outlined four main concerns about banking services in the UK: |
| The inquiry will take 18 months to complete. | The inquiry will take 18 months to complete. |
| The regulator also said it would review the 2002 report by its predecessor, the Competition Commission, to see if its findings were still relevant. | The regulator also said it would review the 2002 report by its predecessor, the Competition Commission, to see if its findings were still relevant. |