View more on these topics

OFT to investigate obstacles for would-be lenders

The Office of Fair Trading is to review the barriers faced by new entrants wanting to enter the retail banking sector and for smaller banks looking to expand.

The OFT has published a paper today calling for evidence on the barriers for entry, expansion, and exiting the market for retail banks, and how these affect banking for personal customers and small and medium-sized enterprises.

It is looking for evidence on issues such as how easy it is to obtain authorisation from the Financial Services Authority, the constraints of capital and liquidity requirements, and the difficulties in developing branch networks.

The regulator also wants to collect more evidence on how difficult it is for banks to wind up and the requirements of the Special Resolution Regime.

The OFT says it would particularly like to hear from established providers, new entrants and potential new entrants to the sector, industry associations and organisations representing consumers and SME customers.

Clive Maxwell, senior director for services at the OFT, says: “The OFT is committed to encouraging competition within retail banking that benefits consumers through cheaper and better products or services.

“We have recently seen some new players enter retail banking and we want to understand whether there are any hurdles to this or to the expansion of smaller banks.”

The review covers the whole of the UK and will run until July 8. Findings are due to published in autumn.


Stop whining or get out and leave it to the professionals

Those brokers who are moaning about the news that Skipton Building Society is now offering 95% LTV deals direct display little understanding of the industry or knowledge of criteria, yet they call themselves professionals. The challenging past couple of years is just what this industry has needed for some time to separate the wheat from […]

Aldermore offers loans via select panel of brokers

Aldermore, an intermediary residential and buy-to-let mortgage lender, launches today. The lender is initially offering its products to select brokers via networks and clubs including 3mc, BDS, Legal & General, Mortgage Intelligence, Mortgages for Business, Mortgage Next, Pink, Platinum and PTFS. Colin Snowdon, chief executive of residential mortgages at Aldermore, says: “It’s our intention to […]


MPPI is providing shelter in the storm

Recent Council of Mortgage Lenders figures show mortgage arrears fell and repossessions were down in Q1 2010 to 9,800 from 10,600 in Q4 2009. Great, until you realise this works out at 110 a day. Meanwhile, unemployment has risen to 2.5 million – the highest number since December 1994. There is a fear that public […]


News and expert analysis straight to your inbox

Sign up
  • Post a comment
  • Chris Gardner 28th May 2010 at 8:52 am

    should the OFT stick with investigating dodgy plumbers and other rogue traders. what a waste of money.