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UK: Competition watchdog criticised by MPs over bank reform

By  |  November 1, 2016

The competition watchdog has been accused of complacency and missing an opportunity to overhaul high street banking, including capping overdraft charges, despite a two-year long investigation.

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    The accusations were levelled at Alasdair Smith, who led the investigation by the Competition and Markets Authority, by MPs on the Treasury select committee who were questioning him following the publication of the report in August.

    In a gruelling evidence session, MPs questioned why Smith – flanked by two members of his team – had not put a cap on overdraft charges and taken more radical measures to break the stranglehold on the current account market held by the “big four” of Lloyds Banking Group, Royal Bank of Scotland, HSBC and Barclays.

    Andrew Tyrie, the Conservative MP who chairs the committee, said the CMA had “dropped the catch” despite support from politicians, academics, consumer groups and the media for a tougher stance towards the banking sector.

    “The banking crash has changed the terms of trade in favour of the regulators with respect to reform,” said Tyrie.

    Full Content: The Guardian

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