OFT announces in-depth study of banking sector
After a brief review of banking practices raised concerns, the Office of Fair Trading (OFT) has announced that it will now undertake more thorough research into bank pricing.The initial study was carried out after consumer concerns as to the fairness of bank charges, which, having reviewed the matter, the OFT now shares. However, it acknowledges that a more detailed examination is necessary. John Fingleton, OFT chief executive, said: "A quick-fix solution is not the answer as this might be of limited long-term benefit and could have unintended and far-reaching consequences across the whole sector and on consumers as a whole." Mr Fingleton added: "The UK retail banking market performs well in many dimensions, especially relative to international norms. However, the issue of bank current account charges is a matter of real concern to the banks' customers, and raises wider questions about competition and transparency of pricing."The OFT will release more details of the study in late April, and says it expects the review to be completed by the end of 2007.
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