By Ian Walker
LONDON--The U.K. Competition and Markets Authority Thursday
announced an "in-depth" market investigation into the personal
current account and SME [small to medium enterprise] retail banking
sectors, confirming its provisional decision in July.
"Having carefully considered the consultation responses, the CMA
continues to have concerns about the effectiveness of competition
in these sectors and has decided to make a market investigation
reference," it said.
A number of issues are under consideration, including the low
levels of customers shopping around and switching; limited
transparency, and difficulties for customers in making comparisons
between banks, particularly for complex overdraft charges on
personal current accounts.
The regulator will also investigate the continuing barriers to
entry and expansion into the sector, limiting the ability of
smaller and newer providers to develop their businesses.
Alongside this, the CMA said it will review the competition
undertakings put in place in 2002 into small and medium-sized
enterprise banking, to examine whether any change of circumstances
since then warrant their being varied or terminated.
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
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