EEF NW comment on Govt response to Banking Commission

Commenting on the government’s response to the Parliamentary Commission on Banking Standards, EEF, the manufacturers’ organisation North West Region Director, David Ost, said: “While we are encouraged that the government has taken tentative steps towards addressing competition in banking we are still not moving far or fast enough.

"Investment is now 34 per cent down on pre-recession levels. While access to finance for UK small and medium sized businesses is only one part of the explanation, it is intertwined with the long-standing problem of a lack of competition in UK High Street banking – a problem that has repeatedly cried out for a remedy.

“The proposed review by the incoming payments regulator of moving to full account number portability needs to be expanded to include other actions to boost competition and access to finance for businesses including a time-limited incentive for firms to switch banks, options for sharing branch infrastructure, and lowering barriers to entry for new banks.”