November 6 2014.

The CBI today commented on an announcement by the Competition Markets Authority (CMA) of a full competition inquiry into the market for banking current accounts and small business banking.

Matthew Fell, CBI Director for Competitive Markets, said: “A healthy and competitive banking market is good for businesses and consumers and vital to the UK’s economic success.

“Many measures to boost competition in banking are already underway, including 7-day switching and a simpler registration process for new entrants. The new credit data sharing initiative will also help.

“There are also huge structural changes being implemented across the banking sector, so the CMA must be mindful that this inquiry, which we support, will take place against a moving backdrop.

“It’s important that businesses, particularly smaller firms, have choice in financial services so the Government and regulators must continue to promote alternative forms of finance, as well as focusing on competition in banking.”