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UK: Challenger banks accuse watchdog of naivety over big four dominance

By  |  May 24, 2016

Britain’s challenger banks have accused the competition watchdog of being “frankly naive” and of failing to create a level playing field in an industry dominated by the big four.

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    In an open letter the bosses of eight challenger banks told the Competition and Markets Authority that its investigation into the sector had not addressed the stranglehold imposed by the UK’s biggest banks.

    The signatories, including the chief executives of Metro Bank and Aldermore, said the CMA had failed to tackle the higher cost of funding and disproportionate capital requirements for smaller banks relative to the largest banks.

    “The most effective and sustainable way to foster competition across the board in the UK banking market is to create a truly level competitive playing field, especially in respect of capital and funding,” the letter said. “This will allow normal competitive forces to work for the benefit of consumers and businesses, and potentially the taxpayer.”

    Full Content: The Guardian

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