According to the government report, customers could pay between 3bn and 5bn less for their banking services if there were full competition. And it says there is even less competition in the small business market, where just a few banks dominate. The criticism comes from the head of a government inquiry into banking, Don Cruickshank, after an investigation lasting 16 months. His recommendations are likely to be addressed by Chancellor Gordon Brown during his Budget speech on Tuesday. The referral was the government's first action on the report's recommendations.
People are more likely to get divorced than change their bank account.
The report points out that because few people switch banks, even when better deals are available elsewhere, the banks are free to make high charges and pay little interest. He is recommending changes to ensure that the big four do not prevent new competitors offering better deals. Intensely competitive The banks argue that the industry is intensely competitive, especially compared with the rest of Europe. They say that making it too easy for other companies to start new banks would pose a threat to customers, who could not be sure their money was safely looked after. Recomendations New regulator for bank payments Competition commission to investigate small business charges Basic bank account for low income customers Price information to be published Tim Sweeney, Director-General of the British Bankers' Association, rejected the criticisms and called for a calm and measured response.