A PYMNTS Company

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

 |  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.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    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

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.