Competition Law and UK Retail Banking

This article examines the application of competition law and policy in the UK retail banking sector from 2000 to the present. It focuses on the control of mergers between banks, attempts by the competition authorities to improve the conditions of competition and recent developments following the report of the Independent Commission on Banking. It argues that the traditional arrangements and understandings regarding the banking industry in the UK have broken down but it is as yet unclear what will replace them. Although the competition authorities have attempted to improve the competitive conditions of retail markets, progress has been limited, in part because of market structure issues. The problem for the competition authorities has also been that important decisions are not within their control and that, in some significant cases, the government has taken decisions contrary to their advice.