Office of Fair Trading set to monitor UK banking sector
As the UK government continues to tighten its grip on the UK banking sector it has received a stark warning from the Office of Fair Trading (OFT). The OFT has reiterated its earlier stance that the UK government must not be able to dictate and dominate the UK banking sector in the short to medium term.
Those who have followed the situation in the UK banking sector will be well aware that competition barriers were effectively removed in order to allow the Lloyds Bank/HBOS merger despite concerns that the merged entity would have undue influence over the sector. This was really a last ditch effort to save HBOS although subsequently both banks have been forced to go cap in hand to the UK government, resulting in an increase in the government's share of the enlarged entity.
The OFT is adamant that once the market is back on its feet these short-term concessions should be withdrawn allowing the sector to move back to a more competitive footing. The regulator is also wary of how and when the UK government will withdraw from the UK banking sector in the future in a manner which will not disrupt the market and also maintain a competitive edge.
Share this..
Related stories
Is deflation the new threat to the worldwide economy?
While we have heard concerns regarding inflation, recession and possible depression a new argument was added to the mix today with many now concerned we are entering a period of severe deflation which could well be catastrophic for the worldwide economy. The sharp reduction in UK interest rates was unexpected but well received, but many are now questioning why such a severe reduction was announced...
Read MoreNpower to cut 1,400 UK jobs
28/11/2013 Energy giant Npower which employs 9,600 workers in the UK is to cut 1,400 UK jobs, with a number of these being outsourced to India. The cuts are expected to be in relation to site closures at Peterlee in Durham, Thornaby in North Yorkshire, and Stoke-on-Trent in Staffordshire, however it’s expected that Npower will confirm exact details later on. Npower stated that the reason...
Read MoreRain stops play in English gardens
With this summer being perhaps the wettest on record, Brits are neglecting their gardens, according to new research.The study by Legal & General showed that 67 per cent of those questioned were not going to be buying anything for the garden this summer.Usually, during the summer months, the garden is a focal point of household spending but after the recent wet weather only ten per cent said they w...
Read MoreIrish banking sector in freefall
Yesterday saw a significant fall in the value of the Ireland's banking community on concerns that the short to medium term outlook is turning sour. Debt ratings agency Moody's took the red pen to the industry yesterday and reduced the ratings of all 12 banks operating in the country. This is a reflection of both the Irish economy as a whole and the Irish financial market with the Irish government...
Read MoreUnions attack closure of 90 tax offices across the UK
The UK government appears to be on a collision course with unions after the announcement of 90 tax office closures across the UK. These closures are rumoured to put around 3,400 jobs at risk at a time when the government had promised increased investment in public services. The unions have been quiet of late, after flexing their muscles earlier in the year, but this latest fallout appears to put b...
Read More