Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

UK banks facing break-up as full competition enquiry launched

UK banks facing break-up as full competition enquiry launched

UK banks are again facing potential break up after the Competition and Markets Authority recommended an investigation into the £8 billion current account and £2 billion business account markets.  

The recommendation followed a joint review of the small and medium sized enterprise market conducted with the Financial Conduct Authority and the CMA’s own work on current accounts.

‘The market studies have identified a number of common concerns, together with evidence that competition is not effectively serving the interests of SMEs or [current account] customers,’ said the CMA.

‘Barriers to entry and expansion for newer and smaller banks remain significant and the markets remain concentrated, particularly in Scotland and Northern Ireland.

‘There is very little movement in the market share of the largest banks (other than as a result of mergers and acquisitions)… Many customers see little difference between the largest banks in terms of the services they offer.’

Critically, the FCA added that the investigation will be extended to include the newly-created Payment Systems Regulator ‘given the links between payment systems and competition in retail banking’.

Ownership of the payments transmission system by the big incumbent banks has been widely recognised as a major barrier to new entrants.  

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Commodity conundrum, beleaguered bonds and a US dilemma

Commodity conundrum, beleaguered bonds and a US dilemma

This week’s episode of Investment Pulse looks at the impact of falling commodity prices on banks, dangers of negative yield curves and whether US equities can continue to deliver.

Play Mirabaud's Pyshkin: The US will continue to grow dividends

Mirabaud's Pyshkin: The US will continue to grow dividends

The global equity income manager has invested half of his fund here.

Play Potential US rate rise, cheap oil & the Europe opportunity

Potential US rate rise, cheap oil & the Europe opportunity

This week we analyse the implications of a possible rise in US interest rates, the impact of cheap oil and the European equity opportunity.  

Wealth Manager on Twitter