UK Banks Face CMA Probe

UK Banks Face CMA Probe.

The UK banking sector is facing a full scale investigation by the Competition and Market Authority (CMA) into competition between banks. The CMA suggested a full scale investigation into UK banks and a review of the provision of current accounts and business lending.

The CMA said that lack of competition between banks and new proposals which allowed customers to switch easier and to be more transparent did not meet the needs of personal customers and small businesses.

The CMA was created in April as Britain’s new competition watchdog, powers for the authority will allow reforms such as breaking up big banks if they are too dominant and other powers such as improving information being given to customers.

The authority found that smaller banks were having difficulty trying to breakthrough into the market and customers were seeing little differences between smaller and bigger banks in the services provided.