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 Navigating geopolitical risk with ETFs

Navigating geopolitical risk with ETFs

ETFGI’s Deborah Fuhr on how investors can use exchange-traded funds to position their portfolio.

Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Your Business: Cover Star Club

Profile: Barclays' former advisory boss on his move into property

Profile: Barclays' former advisory boss on his move into property

On paper, Rick Denton might have been expected to finish his career in banking

Wealth Manager on Twitter