BUDGET 2010: Government to improve bank license process
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The government announced in today’s Budget report that it plans to speed up the entry procedures for new banks.
The Budget report says: “New entrants to the market, including well-known brands, are expected to stimulate further competition in products, services and charging structures.”
The Office of Fair Trading is to review barriers to entry in retail banking. This work will consider whether there are any obstacles to entrants providing a competitive stimulus, focusing on personal current accounts but considering banking for SMEs and other issues as appropriate.
The government says it welcomes the FSA’s intention to deliver further improvements to the bank licensing process, for example, improved guidance on initial applications and more structured communication on the status of applications.
This builds on advances already made, particularly in the pre-application process, and will help to ensure new entrants continue to drive a vibrant and competitive marketplace.
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