Labour to consider bank market share

Labour has confirmed it would consider capping the current high-street banking market share.

Ed Miliband explained the party would look at limiting the market share of the top five banks, in order to open up opportunities for new banks to develop.

The leader also believes by restricting the size of HSBC, Barclays, Royal Bank of Scotland, Santander and Lloyds, it would lead to better services and products for consumers.

It is estimated that the five banks hold around 90 per cent share of the banking market and Labour believe structural changes could play a key role in boosting competition across the industry.

Shadow chief secretary to the Treasury, Chris Leslie, explained: “We have got to give customers more choice. Fees and charges are too high. There is not enough of a sense of competition, a hunger among the banks to serve customers.”

Last week, the chancellor called on the European Commission to support the development of regulatory standards in the financial sector to help encourage growth.

Barclay Simpson – experts in corporate governance recruitment