Small businesses are being hindered by excessive loan and current account payments due to banks running a “complex monopoly”, according to the Competition Commission. The provisional findings suggest that banks make monopoly profits, without explicit cartel agreements, and are inefficient as a result of low competition in the sector.
Five banks- HSBC
Other problems raised by the commission include the lack of transparency regarding charges and services, especially charges related to the clearing system. Barclays responded by dismissing the commission’s suggested remedies as ‘purely hypothetical’ and denied acting against public interest.
