Closed-shop City barring new banks
nick cowen, 8 May 2012
Britain’s financial regulators have been co-opted into protecting major banks from competition, according to a new Civitas report. The result is that big banks can get away with reducing lending to businesses and offering poor service to customers, without the risk of losing accounts to competitors.
Street Cred, by Stephen L. Clarke, examines how financial regulations, introduced to protect consumers, have, ironically, been wielded to defend the market position of big commercial banks against new entrants. Clarke uses examples of successful local banks in parts of Europe to show how a rejuvenated local banking sector could more effectively serve British businesses and consumers.
