BRITAIN’S economic recovery is being held back by a lack of competition in the banking market, manufacturing group EEF claimed today in its response to the Banking Commission’s report last month.
Poor access to credit is hurting investment, particularly by small firms, said EEF, formerly the Engineering Employers’ Federation.
It argues that removing barriers to the establishment of new banks and making account switching easier will improve competition and help business customers.
And it wants regulators to consider referring the small business banking market to the competition authorities.
“Many firms have disengaged from banks altogether,” said EEF chief Terry Scuoler. “Initiatives such as Funding for Lending provide some help, but we will only crack this nut by getting more competition into business banking.”