UK financial regulators are reportedly talking with approximately 25 potential new banks in a bid to boost competition within the sector, said Andrea Leadsom, a Conservative lawmaker and economic secretary to the Treasury.
The British lawmakers and regulators apparently want to break the dominance of the country’s biggest four banks – Lloyds Banking Group, Royal Bank of Scotland, Barclays and HSBC – which account for more than three-quarters of lending to individuals and small businesses.
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Andrea Leadsom was quoted by Reuters as saying, "We are trying to make sure that it is much easier to set up a new bank and to grow market share."
"Reforms should be as much about competition as safety and stability," Leadsom told the publication at a conference organized by the British Bankers’ Association.
Leadsom also said that promotion of competition should be prioritized over increased regulation of the industry.
Britain’s new payments regulator is looking to scrutinize the benefits and cost of introducing a system that would enable customers to switch banks without changing their account numbers.
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