Bank lobbyists are encouraging lawmakers to relax the barriers to entry of the banking industry to boost competition, according to reports.
Banking lobby group the British Bankers’ Association spoke Monday to champion the government to establish rules that would cap the size of banks and lower the cost for new competitors to enter the payments system.
The remarks were made ahead of the 2015 election, which has often focused on banking reform. The Competition and Markets Authority is reportedly considering a full market inquiry into the industry as five major banks account for more than three-quarters of the UK’s lending business.
”The best way to promote competition is by creating a more level playing field for players of all shapes and size,” the BBA’s director of strategy, James Barty, said Monday.
Additional reports said that officials are speaking with more than two dozen potential new banks as the government explores new ways to increase competition among lenders.
Full content: Reuters
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