OFT launches banking regulation review

The Office of Fair Trading has launched a review that could encourage the growth of private banking services in the UK.

It is to examine the barriers to entry, exit and expansion in the retail banking industry in an effort to make it easier for firms to expand according with demand.

Noting that quick and efficient entry and expansion will boost customer service, as it would result in banks that do not meet their client’s needs losing market share to those that can, the OFT said it is seeking the view of new entrants to the market, as well as established providers and industry associations.

’The OFT is committed to encouraging competition within retail banking that benefits consumers through cheaper and better products or services,’ remarked senior director for services at the body Clive Maxwell, adding that it wants to understand whether there are ’hurdles’ preventing competition between banks.

Commenting on the news, the British Bankers’ Association said in a statement it welcomes competition in the sector, as it gives customers greater choice and acts as a ’further spur’ to innovation.ADNFCR-2318-ID-19803943-ADNFCR