Lloyds branch sell-off recommended by banking commission
Lloyds Banking Group should sell off more branches to promote competition in the retail banking market, according to the Independent Commission on Banking's interim report.
The commission, which is due to deliver its final recommendations in September, believes Lloyds TSB's acquisition of HBOS in the economic crisis of 2007 has given the combined banking group too much power on the high street. Lloyds Banking Group has around 30% of current accounts.
The commission's report recommended: "Although Lloyds is required to divest a package of assets and liabilities to satisfy conditions for state aid approval set by the European Commission, this divestiture will have a limited effect on competition unless it is substantially enhanced."
In addition, the commission called for the banking sector to make it easier for customers to switch current accounts, although it stopped short of recommending full account number portability.
Its report said: "Besides increased concentration, conditions are generally poor for consumer choice in the banking sector, due to (real and perceived) difficulties in switching accounts, difficulties in understanding and comparing products, and barriers to entry facing new players who might have a better customer offering.
"There is reason to believe that a radically improved system for switching accounts could and should be introduced at a reasonable cost within a short timescale."
The commission also recommended that the Financial Conduct Authority be given a primary duty to promote competition.
On the question of whether banks should be forced to separate their retail and investment banking operations, the commission opted for a form of ring-fencing rather than break-ups into different companies.
This article was first published on marketingmagazine.co.uk
- Campaign Marketing Manager EMAP Competitive + Bonus, London (Greater) / London (East), London (Greater)
- Exhibition Designers WRG Live Competitive salary and benefits package dependant upon experience, Manchester, Greater Manchester
- Producer WRG Live Competitve salary and benefits package dependent upon experience, London (Central), London (Greater) / Manchester, Greater Manchester
- Content Manager WRG Live Competitive salary and benefits package, Manchester, Greater Manchester
- Search Manager - London - up to £45K+attractive benefits Salt £40000 - £45000 per annum + bonus, London
- Macmillan defends hijacking ice bucket challenge
- Comparethemarket.com first UK brand to run Facebook Premium Video ads
- The role of private equity in adland
- Game Of Thrones actress stars in online Karen Millen campaign
- Aga targets city homes with cooker campaign
- Uncle Ben's launches YouTube cooking show