Home  Latest News FSB Urges Parliament to Press for OFT Bank Probe
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FSB Urges Parliament to Press for OFT Bank Probe |
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 Only a full Office of Fair Trading (OFT) investigation into competition in Scotland’s banking sector will address the duopoly facing too many business customers, the Federation of Small Businesses has warned.
Speaking after the recent Scottish Parliament debate on the Economy, Energy and Tourism Committee’s report on banking in Scotland, Andy Willox, the FSB’s Scottish policy convener, said: “The committee got it spot on when it called for the Scottish banking market to be opened up for both personal and business customers.
“Better competition between a greater number of players is crucial and the committee were absolutely right to call on the OFT to institute a formal investigation into competition in the Scottish banking market.
“The OFT has said it will look at the barriers to entry into the banking market. But, while the review will consider small business banking, it will be conducted on a UK-wide basis.
“But, as the FSB’s evidence to the inquiry made clear, there is a specific problem with competition in Scotland; with over 75% of the small business banking market in the hands of the two major players - RBS and the new Lloyds Banking Group.”
Willox added: “Therefore, nothing short of a full investigation into competition in Scotland, as urged by the Committee, will do. MSPs and Ministers must join together to exert the maximum pressure on the OFT and explain to them why they must now act decisively.
“Vince Cable, the Business Secretary also needs to recognise that the business banking market across the UK is not uniform. We cannot confuse the business banking marketplace of London and the Southeast with that of the entire UK.”
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