The Competition Commission has met several times since the September 11 attacks on the US to consider its recommendations for reforming small business banking in the light of the changed economic situation.
Banks hope the watchdog will water down any plans it may have for a big shake up of the sector in order to avoid a cut in credit to small enterprises. The commission is finalising its 19 month investigation of banking services for small business, and will hand its report to ministers on Friday.
Derek Morris, chairman of the commission, refused to say whether the watchdog had held up its provisional conclusion that the banks operate a “complex monopoly” in services to small businesses.
But he said that the deteriorating economic environment was taken into account in coming to its conclusion.
“We would naturally think through the impact, “ he said. “Of course that could have an impact on the outcome (of the enquiry).”
