Tuesday, May 14, 2013
Posted by D. Daniel Sokol
Cosmo Graham, University of Leicester offers his thoughts on Competition Law and UK Retail Banking.
ABSTRACT: This paper examines the application of competition law and policy to retail banking in the UK primarily from 2000 until the present. Retail banking markets are characterised by high concentration, low levels of switching, a lack of transparency of pricing and significant entry barriers. The paper examines all these areas and finds that UK competition authorities have concentrated on switching and transparency measures although there are characteristics of consumer behaviour that are likely to limit the effectiveness of this approach. Since the financial crisis concentration in the industry has increased because of governmental decisions. Entry barriers remain significant.