WIREDGOV

The CBI responded to Labour Party proposals on banking reform, ahead of a speech by Ed Miliband.

Katja Hall, CBI Chief Policy Director, said:

“The direction of travel in banking to boost choice and competition is positive, with several new players arriving on the scene, boosted by seven-day switching and a simpler authorisation system for new banks. More can always be done and it’s right to focus on the availability of credit data, but imposing arbitrary caps on market share is too simplistic.”

On banking market thresholds:

“Personal and SME banking have both received intense competition authority scrutiny in recent years. It’s not for politicians to dictate market structures - they must allow competition authorities to do their job.”

On enforced branch disposals:

“There are already new entrants making an impact on the market without the need for artificially carving up existing bank branches.”

On a national credit register for SMEs:

“Better access to credit data will help tackle barriers to entry and growth in banking, and inform better lending decisions. Of course, data can never replace good relationship banking and sound judgement.”