• Privacy policy
  • T&C’s
  • About Us
    • FAQ
    • Meet the Team
  • Contact us
TLE ONLINE SHOP!
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
  • JOBS
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
  • JOBS
No Result
View All Result
The London Economic
No Result
View All Result
Home Business and Economics Business

Academic applauds CMA’s decision to investigate banks

  By Joe Mellor, Deputy Editor A senior academic has shown his approval of the CMA’s decision to investigate High Street banks over a lack of competition. The big four High Street banks, which provide 77 per cent of current accounts and 85 per cent of business lending, may ultimately be forced to divest businesses […]

Joe Mellor by Joe Mellor
2014-07-18 15:02
in Business, Economics, Finance
FacebookTwitterLinkedinEmailWhatsapp

 

By Joe Mellor, Deputy Editor

A senior academic has shown his approval of the CMA’s decision to investigate High Street banks over a lack of competition.

The big four High Street banks, which provide 77 per cent of current accounts and 85 per cent of business lending, may ultimately be forced to divest businesses and allow new competitors.

Dr Steve McCabe, economist, lecturer and active researcher from Birmingham City University’s Business School, said: “Learning that the Competition and Markets Authority (CMA) has suggested the big High-Street banks may need to be broken up proves that urgent action is needed to address the mess that was caused by them, resulting in the global financial crisis that many of us still suffer from.

“Since this happened, banking reforms have moved at snail’s pace, if at all. The money that has been injected into the banking system through so called ‘quantitative easing’ has been effectively swallowed up and has not led to the funding of small business investment that is so desperately needed to assist in the recovery.

“We as personal customers are led to believe that we are doing well because we still receive ‘free’ banking. However, following a year and a half investigation into a sector that is worth £10 billion we discover that the banks we put so much trust in are finding more inventive ways to charge us in other ways; most especially through the almost zero levels of interest and sometimes absurd charges elsewhere.

RelatedPosts

Brace for financial crisis-style recession as Bank of England signs off biggest rate hike in nearly 30 years

Number of days UK CEO works to earn frontline workers’ salary is shocking

HSBC rebuffs break-up calls and pledges to boost dividends as profit surprise propels FTSE 100 higher

Brexitland trends as Brit wine wholesaler quits UK and video about damage to chemical industry goes viral

“If you owned shares in RBS and Lloyds prior to the credit crunch they are probably worth less than when you bought them due to the appalling strategic decisions made by the executives. The Competition and Markets Authority are absolutely right to call for reform.”

However, the British Bankers’ Association has argued that now is not the time to investigate competition in the banking sector, as the introduction of new technology (such as mobile banking) and making it easier to switch accounts, has helped to open up the industry. Additionally, there has also been the emergence of competitors such as Tesco, Virgin Money and TSB.

A full-scale inquiry would take about 18 months to complete.

 

Since you are here

Since you are here, we wanted to ask for your help.

Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.

Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.

If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.

To donate or subscribe to The London Economic, click here.

The TLE shop is also now open, with all profits going to supporting our work.

The shop can be found here.

You can also SUBSCRIBE TO OUR NEWSLETTER .

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

Trending on TLE

  • All
  • trending
Abdollah

‘Rescue us’: Afghan teacher begs UK to help him escape Taliban

CHOMSKY: “If Corbyn had been elected, Britain would be pursuing a much more sane course”

What If We Got Rid Of Prisons?

More from TLE

Lucky Numbers and Horoscopes for today, 9 October 2021

London MP takes aim at Brexiteers in “sh*tbag racist w*nkers” twitter rant

Of Wood and Region

Even the Brexit Party? German MEP misses British humour in European Parliament

Daily Express, government and Leave campaigners all caught out in a lie over roaming charges

Conte admits to frustration in so far failing to sign Manchester United striker

Hammerson sells Places des Halles in Strasbourg

Brexit: A six-point guide to why the UK’s unresolved EU exit plans are weighing on its credit rating

Jo Cox sister: politics has got “progressively worse” since her killing

Climate protestors glue themselves to Corbyn’s house and target trains

JOBS

FIND MORE JOBS

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Meet the Team
    • Privacy policy
  • Contact us

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.