View more on these topics

LibDem peer calls for investigation into banking competition

UK-Parliament-Big-Ben-Lamp-700x450.jpg

Baroness Susan Kramer is calling for a cap on market share for banks and says the sector should be immediately referred to the Competition and Markets Authority. 

Writing in Banking 2020: A Vision for the future, a New Economics Foundation report published this week, Liberal Democrat Baroness Kramer wants to end market dominance by big banks.

She says: “New competitors will take time to grow organically and we need a fully functional banking system in the near-term to support recovery in our economy.

“So, I would argue that we should refer the industry to the new Competition and Markets Authority now, in contrast to the Office of Fair Trading’s recommendation that it consider such a referral in a few years’ time.

“The USA sets a cap on market concentrations for its banks to force competition. I see no reason why we should not do the same.”

The Competition and Markets Authority would undertake an in-depth examination into whether the make-up of the sector is harming competition and can recommend remedies.

In January, the OFT decided against referring the sector to the CMA, claiming the EU decision to force the sale of almost 1,000 branches by Lloyds Banking Group and Royal Bank of Scotland would be enough to boost competition.

John Charcol senior technical manager Ray Boulger says: “It is a crackpot idea. An investigation would waste millions of pounds of taxpayers and banks’ money which would ultimately hit customers.”

Recommended

1

Ex-Lighthouse chairman Hickey paid £260k after Aim delisting failure

Lighthouse Group paid former executive chairman David Hickey £260,000 upon his resignation from the firm following its failed attempt to delist from the Aim market. Lighthouse proposed to delist from the market in July last year but failed after 53 per cent of shareholders voted against the proposal. It required 75 per cent of votes […]

EU plans to delay fund manager bonus cap vote

European Parliament lawmakers intend to delay their vote on capping fund manager bonuses as they continue to work out the details of the plan, according to reports. Sven Giegold, the parliament’s lead lawmaker on the plan, told Bloomberg that legislators are looking at changes to draft measures already approved by the EU’s economic and monetary […]

Co-op Bank hires UKAR chairman Richard Pym

The Co-operative Bank has appointed UK Asset Resolution chairman Richard Pym as part of efforts to turn around the ailing bank. UK Asset Resolution was set up to wind down the so-called “bad banks” of Northern Rock and Bradford & Bingley. Pym, whose 40-year financial services career also includes time as Alliance & Leicester group chief […]

20

Ian McKenna: The advisers in denial about technology

If there was an award for the most over used cliché in our industry, over the last year it would undoubtedly be Darwin’s statement that it is those who best adapt to change that survive. This is trotted out with monotonous regularity to support arguments that it will be traditional face to face advice that […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment