The Pharmaceutical Journal Vol 264 No 7089 p462
March 25, 2000 Business

Competition inquiry for small business banking

The Competition Commission has been asked to hold an inquiry into banking for small and medium sized businesses following a review of the banking sector undertaken by Mr Don Cruickshank (the Cruickshank report) which was published on March 20. In a press statement, Mr Cruickshank said: "Neither personal nor small business customers are getting a fair deal from banks. They are paying up to £3-5bn a year too much for their banking services."

Review says small businesses are being overcharged

Mr Cruickshank noted in his report that the leading banks in the small business sector, National Westminster, Barclays, Lloyds TSB, HSBC and Royal Bank of Scotland, control over 80 per cent of the market for small business banking. Mr Cruickshank recommended that more information on banking services and charges should be made available to businesses.
The Competition Commission's inquiry is expected to take 15 months to complete.
Competition in UK banking: a report to the Chancellor of the Exchequer, Stationery Office (ISBN 011 560 0752), price £49.50. Copies are available from the banking review website (www.bankreview.org.uk).