Full competition inquiry into the dominance of 'big four' UK banks launched

The Competition and Markets Authority will look into how banks treat small business and personal customers.

17:48 06 November 2014

The Competition and Markets Authority is set to launch an 18-month investigation and will look into how Britain’s four major banks treat their small business and personal customers.

The move was announced amid speculation that customers are not getting a good enough deal from the major high street players. The result of the investigation could signal the end of free banking for current accounts.

Alex Chisholm, the head of the Competition and Markets Authority (CMA) said: “After carefully considering the consultation responses, most of which supported a market investigation, we remain of the view that there should be a full market investigation into the sector.”
 
“Effective competition in retail banking is critically important for individual bank customers, small and medium-sized businesses, and the wider economy,” he added.

According to the CMA, the big four – Barclays, HSBC and bailed-out Lloyds Banking Group and Royal Bank of Scotland – have a 77% share of personal current accounts and an 85% share of small business banking, market shares that have barely shifted for at least 15 years.