Commenting on the Competition and Markets Authority’s provisional decision on personal accounts and small business banking, Craig Donaldson, Chief Executive at Metro Bank, said:
“Metro Bank welcomes the CMA’s investigation, but the provisional remedies still have a long way to go to create a truly competitive market.
“Together, the big four banks provide 70% of personal current accounts and an astonishing eight out of 10 business loans. Significantly more needs to be done to break their dominance, however contrary to the CMA’s belief, what is holding new entrants back is not the inability “to highlight to customers how new offerings compare with their current deal”, but not being able to compete on a level playing field.
“Forcing growth organisations to hold disproportionate capital reserves and subjecting them to excessive taxes, is anticompetitive and will stifle growth. The CMA is letting the incumbent banks off the hook by failing to provide a meaningful remedy to address the huge disadvantages suffered by challenger banks."