Competition Commission Presents Findings Of Retail Banking Inquiry

by Ulrika Lomas, for LawAndTax-News, Brussels

19 July 2006

The European Commission held a public hearing in Brussels on 17th July to discuss the preliminary findings of its sector inquiry into competition in retail banking.

The sector inquiry looked at the markets for payment cards and for core retail banking services in the EU.

In its interim report on payment cards, published in April, the Commission highlighted significant market barriers which pushed up prices for firms and consumers. The Commission has now published its interim report on core retail banking services, including current accounts and related services, which shows clear evidence of fragmented markets and of areas where markets are not working as well as they should.

Competition Commissioner Neelie Kroes explained that:

“Our competition analysis of the retail banking market shows that markets across the EU remain fragmented, that there are still significant entry barriers and that consumers and SMEs have difficulties in finding the best offers for them. We want to discuss with stakeholders how best to tackle these problems.”

At the public hearing the Commission presented the preliminary findings of the sector inquiry to stakeholders, including industry, consumer groups and regulators.

Participants discussed the Commission’s preliminary findings on payment cards, and debated the main points raised during the written phase of public consultation. The Commission has now also published its preliminary findings on the market for core retail banking services, including current accounts and related services.

A twelve week public consultation on the preliminary findings will end on 9 October 2006.

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